RSI Divergence — Trading Wiki

Publisher and editorial transparency

Published by TradeHQ. Site creator: Anuga Weerasinghe. Limited source check: 2026-11-01. Checked Fidelity's RSI scale and divergence explanation and the stipulated $100/$95 and RSI 25/32 comparison. These are input values, not calculated RSI; no predictive performance, historical backtest or TradeHQ indicator equivalence was verified. This is not independent professional review.

What RSI Divergence means

RSI divergence describes a mismatch between selected price swings and RSI swings. It can be followed by continuation or reversal, so it is not a dependable forecast by itself.

In depth

Standard RSI compares smoothed upward and downward price changes over a selected lookback and expresses their relative strength on a 0–100 scale. A divergence compares its selected swings with price swings: for example, a lower price low alongside a higher RSI low. Those observations can occur before either a reversal or continued decline. Changing the interval or which swings count changes the comparison. No timeframe is established here as reliably predictive. Use matching external price and standard RSI data for the worksheet; the RSI-style value in TradeHQ is not a standard historical RSI calculation.

Key points

• Bullish divergence: price lower low + RSI higher low
• Bearish divergence: price higher high + RSI lower high
• Results depend on the sample and settings; no reliable timeframe is established here

Why it matters when you are learning

Compare the price swings and RSI swings over the same dates and settings. Record both divergences followed by reversals and those followed by continuation; divergence is not an entry guarantee.

Worked exercise and its limits

Invent two observations from one matching interval: at A, price is $100 and standard RSI is 25; at B, price is $95 and RSI is 32. Price makes a lower low while RSI makes a higher low, so these stipulated swings show bullish divergence. The RSI values are given inputs, not values calculated from just these two prices. Extend the price path once to $105 and separately to $85: the same divergence can precede either outcome. TradeHQ’s RSI-style display is not a standard historical RSI series.