What RSI setting is best for divergence?

The default 14 works for most traders.

Is RSI divergence reliable?

It is a warning, not a signal. Confirmation improves it.

1-hour and 4-hour charts produce cleaner divergences than 1-minute charts.

Education · Indicators

RSI divergence, explained without the hype.

Divergence is when price and RSI disagree. It warns that momentum is fading — it is not, by itself, a reason to enter.

Four types.

Regular bearish: price higher high, RSI lower high — possible top.
Regular bullish: price lower low, RSI higher low — possible bottom.
Hidden bullish: price higher low, RSI lower low — trend continuation up.
Hidden bearish: price lower high, RSI higher high — continuation down.

Trade it with confirmation.

Wait for a break of the last minor swing.
Stop beyond the divergence extreme.
Target the prior structure level, then check the risk-reward is at least 1:2.

Why it fails.

In strong trends divergence can repeat several times before price turns. That is why hidden divergence, which trades with the trend, is often the more reliable one.

FAQ

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