Same RSI Reading: The RSI reading staying the same or moving less than significantly suggests that the momentum behind the price movement may be weakening.
Higher Price: Despite the RSI not showing increased momentum, the price is moving higher. This can be seen as a potential warning sign because it suggests that the price increase might not be supported by strong momentum.
Bearish price-RSI divergence can indicate that the current upward price movement is losing strength, which may be a signal for caution. However, it's essential to consider other technical indicators, chart patterns, and fundamental factors to make a more comprehensive analysis before making any trading decisions. Trading based solely on one indicator or divergence can be risky, so a holistic approach to analysis is advisable.
Higher Price: Despite the RSI not showing increased momentum, the price is moving higher. This can be seen as a potential warning sign because it suggests that the price increase might not be supported by strong momentum.
Bearish price-RSI divergence can indicate that the current upward price movement is losing strength, which may be a signal for caution. However, it's essential to consider other technical indicators, chart patterns, and fundamental factors to make a more comprehensive analysis before making any trading decisions. Trading based solely on one indicator or divergence can be risky, so a holistic approach to analysis is advisable.