SIGNAL FREQUENCY SCORE · 83/100

Divergence

Definition

When price and RSI move in opposite directions at a swing point. Classic divergence signals momentum deterioration; hidden divergence signals trend continuation. Most reliable when combined with structural levels and extreme RSI readings.

How Sigmentum uses it

Classic (regular) bearish divergence: price makes a higher high, RSI makes a lower high. Momentum behind the move is weakening — most reliable at overbought RSI (above 70) after an extended trend, at a known resistance zone. Hidden bullish divergence: price makes a higher low, RSI makes a lower low — the pullback is weak, the trend is likely to resume. Sigmentum uses divergence as a confidence modifier, not a standalone signal.

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