Same RSI Reading: The RSI reading staying the same or moving less than significantly suggests that the momentum behind the price movement may be weakening.
Higher Price: Despite the RSI not showing increased momentum, the price is moving higher. This can be seen as a potential warning sign because it suggests that the price increase might not be supported by strong momentum.
Bearish price-RSI divergence can indicate that the current upward price movement is losing strength, which may be a signal for caution. However, it's essential to consider other technical indicators, chart patterns, and fundamental factors to make a more comprehensive analysis before making any trading decisions. Trading based solely on one indicator or divergence can be risky, so a holistic approach to analysis is advisable.
Higher Price: Despite the RSI not showing increased momentum, the price is moving higher. This can be seen as a potential warning sign because it suggests that the price increase might not be supported by strong momentum.
Bearish price-RSI divergence can indicate that the current upward price movement is losing strength, which may be a signal for caution. However, it's essential to consider other technical indicators, chart patterns, and fundamental factors to make a more comprehensive analysis before making any trading decisions. Trading based solely on one indicator or divergence can be risky, so a holistic approach to analysis is advisable.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.