RSI divergence
Price makes a lower low but RSI makes a higher low. Momentum is fading even as price drops, which often comes before a turn.
Watch it play out
Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.
How the live chart applies the rules
- 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
- Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
- One setup at a time. While a setup is playing out, the same strategy doesn't start another.
- Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
- How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
- Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
- The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.
How RSI divergence works
- 1Where's the level?
- Two confirmed swing lows (or highs) on price and RSI(14).
- 2What's the trigger?
- After the divergence is confirmed, a candle closes above the high of the second swing candle.
- 3Where is it wrong?
- Below the second swing low.
- 4Where does it end?
- The last swing high (low for shorts) if it is at least 1R away, otherwise 2R.
- Markets
- Futures, Stocks, Forex, Crypto
- Timeframes
- 5m to 4h
- Sessions
- Any
- Also called
- bullish divergence, bearish divergence
What it means
Price makes a lower low but RSI makes a higher low. Momentum is fading even as price drops, which often comes before a turn.
How it is confirmed without repainting
Divergence needs confirmed swing points (3 candles each side), so it is always drawn a few candles late, never back-dated.
When it fails
A third lower low with weaker RSI. Divergence can repeat several times in strong trends.
Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.
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