RSI Divergence
When price and the Relative Strength Index disagree about direction — a classic early momentum-shift signal.
What it means
The Relative Strength Index (RSI) is a momentum oscillator, scored 0-100, that measures how fast and how far a price has moved recently. Divergence happens when price and RSI stop agreeing: price makes a new low but RSI makes a higher low (bullish/positive divergence), or price makes a new high while RSI makes a lower high (bearish/negative divergence). Because RSI is measuring momentum rather than price itself, a divergence is often read as an early sign that the current move is losing steam before the price chart itself shows it.
How MarketWall calculates it
MarketWall computes a 14-period RSI from daily closes for every tracked symbol and scans the recent price/RSI series for a genuine pivot-point mismatch — not just "RSI ticked down while price ticked up" on a single day. See the Data Sources & Methodology page for the full signal list.
How it's typically used
A positive (bullish) divergence — price falling to a new low while RSI holds a higher low — suggests sellers are running out of momentum even as price keeps sliding, which is often watched as an early reversal candidate. A negative (bearish) divergence works the same way in reverse: price pushing to a new high on weakening RSI momentum, often watched as a warning that an uptrend is stretched. Divergence is a momentum observation, not a timing signal on its own — it can persist for a while before price actually turns, and it can also simply fail. Traders typically treat it as one input among several (support/resistance levels, volume, the overall trend) rather than a standalone buy or sell trigger.
Live example right now
FAQ
What RSI period does MarketWall use?
A standard 14-period RSI, computed from daily closes.
Is positive divergence always bullish?
It's read as a bullish signal — weakening downside momentum — but like any technical signal it can fail. It's one input, not a guarantee.
Does RSI divergence work the same for crypto as stocks?
Yes — RSI is computed the same way for any symbol with enough daily price history, stock or crypto.
How often does this signal update?
MarketWall's signal engine re-scores every tracked symbol on a continuous loop, roughly every 3 minutes.
See more signals in the interactive walkthrough, read the full Data Sources & Methodology page, or explore it live on a real chart — AAPL or BTC.