Indicators
RSI Divergence
Price makes a new extreme, RSI doesn't confirm it. The disagreement between the two lines is the entire signal, not the RSI level itself.
Drag a line across two RSI points, watch the mismatch resolve live
The subpanel below is a real 14-period Wilder RSI computed from the closing prices. Press down on the RSI panel at one swing point and drag to a second one, the connecting line follows your cursor and the matching price bars auto-highlight above as you go, no separate clicking on the price chart required. Release to lock the second point. The readout below computes the real angle of each line and tells you whether price and RSI actually disagree, which is what a genuine divergence requires.
Press down on the RSI panel at your first swing point, then drag to the second.
How it works
- RSI compares average gains to average losses. RSI = 100 − 100 ÷ (1 + RS), where RS is the average gain over 14 bars divided by the average loss, both Wilder-smoothed the same way ADX is: the first average is a straight mean, every value after that is (prior × 13 + today's value) ÷ 14.
- Divergence needs two lines to disagree, not one line to hit a level. Bearish divergence: price prints a higher high while RSI prints a lower high at that same second point. Bullish divergence: price prints a lower low while RSI prints a higher low. If both lines move the same direction, that's confirmation, not divergence, however overbought or oversold the RSI reading looks.
- The angle readout is the mismatch made visible. Each line you draw, on price and on RSI, has a real slope computed from its actual pixel coordinates on its own panel. When the two angles point opposite directions, that's the disagreement a genuine divergence requires. When they point the same way, the tool tells you why it doesn't qualify.
- A real divergence only warns, it doesn't time an entry. The play-forward after a confirmed divergence shows whether the expected reversal actually took hold over the next several bars, which is a separate question from whether the divergence itself was mechanically real.
Where this breaks
A real divergence can print several more times before price ever turns
Divergence is a momentum-fading warning, not a reversal timer. In a strong trend, RSI can diverge against price on one swing high, keep diverging on the next one, and diverge again on the one after that, all while price keeps grinding to new highs. Each fresh divergence is genuinely real by the mechanical test this tool applies, price and RSI are genuinely disagreeing, and none of them mark the actual top. The strength of the underlying trend, not the presence of divergence, is usually what decides how many more times the pattern repeats before momentum finally drags price down with it. Treating the first divergence as an automatic short, or the first bullish divergence as an automatic long, means fighting a trend that can keep extending through several more warnings first.