RSI Divergence Guide for Crypto Traders
A practical guide to bullish and bearish RSI divergence in volatile markets.
Price and momentum can disagree
A regular bearish divergence occurs when price makes a higher high while RSI makes a lower high. A regular bullish divergence reverses the pattern: price makes a lower low while RSI makes a higher low. These are observations of weakening momentum, not guaranteed reversals.
Compare corresponding swings
If price peaks at 100 with RSI 78 and later at 105 with RSI 71, those aligned swing highs form a potential bearish divergence. Comparing unrelated candle points or different intervals can create a misleading pattern.
Confirmation and limitations
Choose consistent swing definitions and wait for the relevant candles to close. Divergence can persist while price keeps trending. A break of price structure may provide additional evidence, but still fails sometimes. FuturesRadar does not automatically detect divergence in its current scoring formula.
Align the comparison points
Hypothetical worked example. Suppose price peaks at 100 then 105 while RSI at those same peaks is 76 then 71. That is a candidate bearish divergence: a higher price high with a lower momentum high. Comparing a price peak to an unrelated RSI low would not test that pattern.
Does the scanner detect divergence?
No. It shows the latest RSI and an OB count. Confirming aligned swing points requires separate chart inspection; neither a high score nor a falling RSI alone proves divergence.
Verify the assumptions
Check the input window, fees and data availability before applying this example. For the exact software behavior and coverage limits, read the scanner methodology. Examples explain arithmetic and interpretation; they are not historical performance claims.