rsi divergence trading, still profitable or marketing meme
-
classic setup: price makes higher high but RSI makes lower high (bearish divergence) or vice versa (bullish divergence). traditional signal that trend is weakening.
ive been tracking divergence setups for 6 months. results:
- 41% win rate
- 1:1.4 R average
- profitable barely, but underperforms my non-divergence breakout strategy
curious what others see. is RSI divergence still a worthwhile addition to a trading toolkit in 2026, or is it noise that retail teachers keep promoting?
-
divergence as a standalone signal is barely better than random. divergence as part of confluence (at key support/resistance, with volume confirmation, with HTF bias alignment) is meaningfully profitable. its a confluence factor not a primary signal. teachers selling divergence-only courses are misleading.
-
+1. backtested RSI divergence on EURUSD 4H for 5 years. raw signal had marginal edge (52% win rate, 1:1 R, basically breakeven after costs). adding 'must occur at clear support/resistance' filter pushed it to 58% win rate, 1:1.4 R, properly profitable. context matters more than the divergence itself.
-
divergence can be found on any oscillator: RSI, MACD, Stochastic, momentum indicators. RSI is most popular because its simple. some traders prefer MACD divergence claiming its less noisy. in practice they give similar signals at slightly different times. the specific indicator matters less than how you use the divergence concept.
-
i use divergence as a 'pay attention' signal rather than a trade signal. when i see divergence i look more carefully at price action for actual reversal patterns. divergence alone isnt enough but as a 'something might be ending' alert its useful.
-
rsi divergence is the most published technical indicator concept ever. by definition any retail trader signal that's that publicized has been arbitraged away. trade what others aren't watching, not what they are.
-
partially fair but oversimplified. publicized signals can still work IF they require skill to apply correctly. divergence requires identifying the actual swing points which is more art than science. easy to mechanize wrong, hard to mechanize right. survives publication because most practitioners apply it badly.
found my best setups by combining HTF divergence with LTF entry triggers. its a contextual tool not a silver bullet. wonderful when applied thoughtfullyHello! It looks like you're interested in this conversation, but you don't have an account yet.
Getting fed up of having to scroll through the same posts each visit? When you register for an account, you'll always come back to exactly where you were before, and choose to be notified of new replies (either via email, or push notification). You'll also be able to save bookmarks and upvote posts to show your appreciation to other community members.
With your input, this post could be even better 💗
Register Login