ALKYLAMINE : Understanding RSI Positive Divergence

- RSI Positive divergence occurs when the price is in a downtrend but the indicator starts to rise.
- It is a condition where Price makes lower tops and lower bottoms whereas Indicators fail to do so.
- They make higher tops and higher bottoms. These are usually reliable signs as they predict prices are going to reverse.

From the above chart, you can see

On 27-03-2023 Price was at 2166 and RSI was 23.21
One 26-04-2024 Price was at 1808 and RSI was 26.90

So price was making lower lows and RSI was making higher lows, which show RSI Positive Divergence, which a signal of Trend Reversal.

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