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Goldman Academy

RSI divergence

IntermediateMarkets: Any liquid marketTimeframes: H1 to D1Holding time: Hours to days
new high, weaker momentum
Illustration only. Real chart examples are added by Faisal with TradingView Lightweight Charts.

What it is

When price makes a new high but RSI makes a lower high (bearish divergence), or price makes a new low but RSI a higher low (bullish), momentum is fading and a turn may follow.

The rules

SetupA clear divergence between two swing points, ideally at a known level.EntryAfter a break of the most recent small swing in the new direction, not on the divergence alone.StopBeyond the extreme swing.TargetThe previous swing or level; 2R where possible.

When it fails

In strong trends, divergence can appear again and again while price keeps going.

Risk profile

Counter-trend: lower win rate unless combined with levels and confirmation.

Who it suits

Intermediate traders who use it as a signal to look, not as an entry by itself.

Automate it

These rules can be turned into TradingView alerts and copied to your accounts with Goldman Copier.
Education, not advice. Goldman Academy teaches how markets and tools work. Nothing here is a recommendation to buy or sell, and no lesson promises profits. Trading leveraged products carries a high risk of losing money; only trade money you can afford to lose.