the rsi divergence most traders ignore


price makes a new high.

rsi makes a lower high. that's bearish divergence. it doesn't mean sell immediately, it means the momentum behind the move is weakening. the engine is losing power even as the car looks like it's still going fast.

i pair divergence with structure and volume before acting on it. alone it's a hint. combined with confluence, it's a signal.

Viktor.
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