What is bullish divergence RSI?

The bullish divergence RSI setup shows two troughs in the RSI indicator window forming higher lows while the price shows lower lows. The RSI, therefore, leads the price action and is pointing in the new direction. The price follows directly after to correct the divergence in the direction of the indicator’s signal. What is Bearish Divergence?

What is a hidden bullish divergence?

A hidden bullish divergence is a setup where the oscillator forms progressively lower lows at the same time that the price is forming higher lows. This setup is frequently seen in situations where the price has been in consolidation or has performed a pullback from an uptrend.

When does a bearish divergence form on the RSI?

This divergence mostly forms after a prolonged downtrend or a multi-legged pullback in an uptrend, and it indicates a bullish reversal signal. The classical bearish divergence forms on the RSI when the price is making a higher swing high while the RSI is making a lower high.

What is RSI divergence signal?

The RSI divergence signal is generated when the price swings and the indicator movement are no longer in phase. It could be that the price is making a higher swing high when the indicator is making a lower high or the price is making a lower swing low when the indicator is making a higher swing low.