How RSI Divergence Warns You Before Trend Reversals

📈 Bullish Divergence – Price makes lower lows, RSI makes higher lows → selling momentum weakening, possible upside. 📉 Bearish Divergence – Price makes higher highs, RSI makes lower highs → buying momentum weakening, possible downside. ✅ Steps to Trade: Spot divergence on daily chart (RSI 14 period) Wait for price action confirmation (break of trendline/support/resistance) Align with broader market sentiment 📌 Example: Stock rallies from ₹100 to ₹120 but RSI drops from 75 to 68 → early signal of weakness. 🧠 Divergence is a leading indicator — it warns before trend changes, unlike most indicators that lag.