Been watching RSI divergence signals for months now and honestly getting mixed results.
Sometimes it works perfectly, other times price just keeps climbing despite the divergence. Starting to wonder if I’m putting too much weight on this indicator alone.
I stopped using RSI divergence as my main signal after it burned me too many times.
Now it’s just a heads up that momentum might shift, but I wait for price structure to actually break before I enter.
Size down when divergence is your main trade reason.
Hidden divergence beats regular divergence for reliability. I treat it as a warning signal, not an entry trigger.
Still wait for price action confirmation before entering trades though.
RSI divergence burned me hard when I started out. Works much better in ranging markets - trending ones will wreck you.
Strong trends keep price overbought/oversold for weeks while RSI keeps diverging. Got caught shorting EUR/USD in 2020 on bearish divergence, then watched it rally another 300 pips.
I only trade divergence near major support/resistance now. Wait for a reversal candle after the divergence too.
By itself? Maybe 40% win rate. Add other confluence and it jumps to 65%.
Trust it maybe 30% of the time in strong trends.