RSI divergence

Classic / reversal · Timeframe: H1 / H4 · Sessions: Any

New price low with a higher RSI → selling exhaustion.

How it works

When price makes a lower low but the RSI makes a higher low, bearish momentum is fading (bullish divergence). It is a reversal signal that improves a lot when it coincides with a liquidity sweep or major support.

Step-by-step rules

1. Price: a swing low lower than the previous one.
2. RSI: a higher low over the same stretch (and below 40).
3. Entry once the swing is confirmed; stop below the low.
4. 2R target.

How Marketalyx tests it

Detector (H1): two swing lows (fractal 3) 5-40 candles apart with RSI divergence; entry once the fractal is confirmed; 2R target.

See real cases on gold and forex →

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Educational content. No strategy guarantees profits and past performance does not guarantee future results.