RSI divergence indicates to technical analysts that the price action and the Relative Strength Index (RSI) are no longer showing the same momentum. It can give a leading signal of change in the trend. A positive divergence takes place when the price makes a lower low but RSI makes a higher low, indicating that price fall has lost the momentum. Similarly, a negative divergence is seen when price makes a higher high, but RSI makes a lower high suggesting that the bulls have lost power. Click here to deep dive into an intraday RSI Positive Divergence Strategy.
