Knowing when a trend is losing steam is difficult if you only look at price. That is why we have added the RSI Momentum Divergence indicator to FYERS Web and the FYERS App to help you see what is happening under the hood.
What is RSI Momentum Divergence?
Divergence happens when price and momentum stop moving together. This indicator automatically scans your chart and labels these moments. It saves you the trouble of manually spotting when the RSI is no longer confirming the price move.
How is it different from RSI?
Standard RSI just shows you a value. This tool specifically hunts for the mismatch between price peaks and RSI peaks. It places a label directly on your chart so you can see the warning sign the moment it happens.
How to read this
Bearish Divergence: Price makes a higher high, but RSI makes a lower high. It suggests the upward move is weakening.
Bullish Divergence: Price makes a lower low, but RSI makes a higher low. It suggests the selling pressure is drying up.
Example
If NIFTY makes a new high but the RSI Momentum Divergence labels it as a "Bearish Divergence," it is a signal that fewer traders are participating in the move. It helps you stay cautious instead of blindly buying the breakout.
Try it out
You can find it in the Indicators menu on FYERS Web & App. It is a simple way to get an early warning before a trend reverses. Do check it out and let us know your thoughts in the comments.