RSI Bearish Divergence
IndicatorPrice makes higher high while RSI makes lower high. Strong reversal signal showing weakening momentum despite higher prices.
Success Probability: 80%
Pattern Visualization
How to Identify
- Price creates higher high
- RSI creates lower high
- Draw trendlines to confirm divergence
- Often occurs in overbought territory
Trading Tips
High probability reversal. Enter on price confirmation. Stop above recent high. Target previous low or support. Watch for distribution.
Price makes higher high while RSI makes lower high. Strong reversal signal showing weakening momentum despite higher prices.
Trading Strategy
High probability reversal. Enter on price confirmation. Stop above recent high. Target previous low or support. Watch for distribution.
How to Identify
- Price creates higher high
- RSI creates lower high
- Draw trendlines to confirm divergence
- Often occurs in overbought territory
Risk Management
With a 80% success probability, this pattern offers strong reliability for trading decisions. Maintain standard position sizing.