RSI (Relative Strength Index) Divergence is a momentum indicator that measures how fast and how much a price has moved recently to show whether a stock is overbought or oversold.
It ranges from 0 to 100.
Above 70 usually means overbought (price may pull back).
Below 30 usually means oversold (price may bounce).
50 is neutral — balance between buying and selling pressure.
Traders use RSI to spot trend strength and possible reversal points. For example:
- RSI rising from 30 → 50 → 70 = momentum building up.
- RSI falling from 70 → 50 → 30 = momentum fading, possible downturn.
