Divergences

Divergences
Divergences between price and RSI produce one of the strongest buy and sell signals. A bearish divergence occurs when prices record a higher high, but RSI forms a lower high. The indicator does not confirm the new high and this signifies weakness in the uptrend. Conversely, bullish divergences form when new price bottoms are getting lower, while RSI lows are rising, indicating weakness in the downtrend.

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