Advanced Technical Concept

On the other hand, hidden divergence occurs when the price makes a lower low, but the RSI indicator makes a higher low, signaling a potential trend continuation. RSI Divergence occurs when the price movement and the RSI indicator move in opposite directions, signaling a potential reversal in the current trend.

Divergence within RSI through price movements is a powerful indication that there will be reversals in the market. There are two types of divergences: bullish divergences and bearish divergences. 1. Bullish divergence