Relative Strength Index
RSI Divergence Alerts
RSI Divergence alerts are available only to holders of the Meta Mafioso NFT.
Alerts trigger at the moment of a confirmed divergence. The time and date of the alert references the moment of confirmation. So called "phantom" divergences where the divergence crosses the RSI line are included.
Coverage is provided for six popular Binance USDT perp pairs on the 4H, 8H, 12H, and 24H time frames. Alerts are delivered to one of eight Discord channels, helping you to prioritize the divergence type and time frame that best suits your trading strategy.
RSI Div alerts provided for the following Binance USDT perp pairs:
- AVAX-USDT
- BNB-USDT
- BTC-USDT
- ETH-USDT
- LINK-USDT
- SOL-USDT
A friendly reminder
Any trading strategy deals in a world of probabilities not certainties. Not every divergence leads to a significant move in price, but when viewed within the wider context of structure and trend, RSI divergences can be a key tool in making profitable trades.
For our fellow TA nerds
Alerts are based on the following settings:
Type:
Wilders
RSI Source
Close
RSI Length
14
RSI EMA Length:
12
Lookback Bars:
28
Confirmation Logic:
Close below wick low / Close above wick high
About Relative Strength Index
RSI is one of the most popular momentum oscillators. Despite being developed over 40 years ago, it remains an extremely useful tool in helping to understand the state of a market.
Oscillating between 0 and 100, traditionally when RSI is above 70 the asset is considered overbought while a read below 30 is considered oversold. However, this simple metric is usually insufficient in timing a reversal. If you’ve been trading for more than a week, you will have noticed that an asset can remain overbought or oversold for far longer than anyone expects.
RSI Divergences
While utilizing RSI for a simple understanding of potentially overbought and oversold conditions can be useful, far more powerful is spotting RSI Divergences. There are four types of RSI Divergences:
Bullish and bearish divergences can be a sign of a reversal in price. Many a crypto top has been foreseen by bearish divergence on the higher time frames. Similarly, bottoms are often put in after multiple drives of bullish divergence.
Hidden bullish and hidden bearish divergence can often signal the continuation of a trend. Price may be pumping and bulls may be aggressively adding to their longs, but in the context of a downtrend the appearance of hidden bearish divergence indicates that the prevailing macro trend will likely continue. The same holds true of hidden bullish divergence in an uptrend where one might expect a downward move in PA to be unsustained, with bulls stepping in to buy the dip.
Remember, the higher the time frame the more meaningful the divergence.