I often encounter a situation in technical analysis where the price reaches a new level while indicators give different signals. Understanding this discrepancy is very important for making better decisions in the market.

RSI is actually a simple but effective tool. It moves between 0 and 100 and shows the momentum status of the asset. Most traders focus on the 30 and 70 levels because crossing these levels can be a sign of a trend change. However, the critical point here is: just looking at RSI is not enough.

We frequently encounter situations called positive divergence with RSI. For example, the price makes a new low but RSI stays at a higher level. This could indicate potential for an upward move. Conversely, in negative divergence, the price makes a new high but RSI remains lower. In this case, the likelihood of a decline increases.

These are just signals; they are not guaranteed buy or sell points. The market structure is very complex. When you see positive divergence on RSI, do not buy immediately—check other indicators as well. Analyze together with other tools like MACD, trend lines, support and resistance levels.

My experience shows that seeing these divergences across multiple indicators is much more reliable. Especially if positive divergence on RSI is supported by other tools, you can make a safer decision. Technical analysis requires patience and attention. Relying on a single indicator is risky; always try to see the bigger picture.