Mastering RSI Divergences for Better Trade Execution

RSI divergences represent one of the most reliable technical signals in crypto trading. When price action and the Relative Strength Index move in opposite directions, savvy traders recognize it as a potential turning point—and that's where opportunity emerges.

Take $AVNT for instance. Traders who've learned to identify RSI divergences effectively have reported winning rates climbing toward 90% on their trades. The beauty of this pattern? It works across virtually all cryptocurrencies, not just one specific asset.

Here's what makes divergences so powerful: they catch shifts in momentum before they show up in price movements. Bearish divergences form when price reaches new highs while RSI fails to follow—a warning that buying pressure is fading. Bullish divergences? That's when price dips lower while RSI bounces higher, signaling that selling exhaustion is near.

The key to consistent wins lies in combining divergence signals with other confirmation techniques and proper risk management. Once you internalize how these patterns play out across different timeframes and market conditions, you'll spot entries and exits with far greater precision.