Editing Relative strength index (section)

===Divergence===
Wilder further believed that divergence between RSI and price action is a very strong indication that a market turning point is imminent. Bearish divergence occurs when price makes a new high but the RSI makes a lower high, thus failing to confirm. '''Bullish divergence occurs when price makes a new low but RSI makes a higher low.'''<ref name="wilder" />{{rp|68}}

Furthermore, traders often use "hidden" divergences to indicate possible trend reversals. A hidden bullish divergence occurs when the price makes a lower high, while the RSI makes a higher high. Conversely, a hidden bearish divergence occurs when price makes a higher low, but the RSI makes a lower low.{{cn|date=August 2023}}