A divergence in the middle of the RSI range (near 50) is statistically weaker than a divergence occurring at the extremes (above 70 or below 30). A great book will dedicate a chapter to , teaching you to weigh divergences based on how stretched the oscillator is.
Hidden divergence has a higher probability of working because it aligns with the primary trend. Use it for entries, not just reversals. Rsi Divergence Book
Do not look for divergence on a single chart. Use the . A divergence in the middle of the RSI
| Type | Price Action | RSI Action | Signal | Reliability | | :--- | :--- | :--- | :--- | :--- | | | Higher Low (HL) | Lower Low (LL) | Buy on Dip | Very High (Trend context) | | Bearish | Lower High (LH) | Higher High (HH) | Sell on Rally | Very High (Trend context) | Use it for entries, not just reversals