RSI CLASSICAL POSITIVE DIVERGENCE

RSI Classical Positive Divergence is a bullish reversal signal that occurs when the price forms a lower low, but the RSI (Relative Strength Index) forms a higher low. This indicates that although the price is making new lows, selling momentum is weakening, suggesting that bears are losing control and buyers may soon take over. The pattern becomes more reliable when it appears near a strong support level, trendline, or key demand zone and is confirmed by a bullish candlestick pattern or a breakout above a resistance level. Traders often use this divergence as an early indication of a potential upward reversal, while waiting for confirmation before entering a trade.