When discussing RSI, there's a detail that many traders overlook: not only the 30-70 levels of the indicator, but also the divergences between price and RSI are very important.

As you know, RSI (Relative Strength Index) may seem like a simple indicator, but in fact, it is a very effective way to measure price momentum. It moves between 0-100 and reflects the recent upward and downward dynamics of the asset. By default, below 30 is considered oversold, and above 70 is considered overbought.

But the real interesting part begins here. The question of what negative divergence is is actually critical for reading the market's hidden messages. This situation occurs as follows: the price makes a new high, breaks the high, but the RSI indicator remains at a lower level. This indicates that although the price appears strong, the momentum is weakening. For traders, this could be a sign of an upcoming correction or a downward trend.

Of course, the opposite also exists. In the case called positive divergence, the price makes new lows but RSI stays high. This can indicate that selling pressure is weakening, buyers are returning, and it can be interpreted as a potential bullish signal.

These divergences provide strong clues for early trend change detection. However, it is important to remember: RSI alone is not sufficient. When used together with other technical analysis tools like MACD, Bollinger Bands, and price formations, you get much more reliable signals. By evaluating market conditions holistically, you can make more informed trading decisions.

To perform such detailed analysis, you need a good charting tool and reliable data. On platforms like Gate, you can easily see all these indicators and follow them in real time.