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JollibeeNo1Customr69 t1_ixzvyae wrote

I find bearish divergences work better when the price is equal to or higher than the previous peak on a lower RSI, assuming the previous peak triggered an Overbought condition on the RSI. That shows there wasn't a much strength behind the new high and is due to come back down again, much like looking at volume. Vice versa for a bullish divergence (you can see this example of bullish divergence when looking at the bottom of the price action and the lower end of the RSI between "2022" and "March", just before the SPY ripped back up to the trendline again- prices went lower/stayed equal, but the RSI was making higher lows on each dip down).

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