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Bullish Divergence
Discrepancy between price and indicator signaling bullish reversal.
Beginner-friendly explanation
A bullish divergence happens when price drops but an indicator (like RSI) rises. It may mean the downtrend is weakening. Example: Bitcoin falls but RSI rises — it might bounce soon.
Intermediate-level insight
Bullish divergences often occur at the end of downtrends. They’re stronger near support or oversold zones. Example: A double bottom with rising RSI around 30 increases the chance of a bounce.
Advanced perspective
Used in countertrend strategies, bullish divergences work best with patterns or rising volume. Example: A swing trader combines bullish MACD divergence with a falling channel breakout to go long.
Technical & Chart Analysis
divergence, bullish, reversal, rsi, macd, signal, support, bounce
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