Triple divergence of the RSIS&P 500SP:SPXThe_STAA triple divergence on the daily RSI is a technical analysis signal that happens when the Relative Strength Index (RSI) and the price of an asset move in opposite directions three times in a row on the daily chart. Here’s the breakdown: ________________________________________ 🔑 Divergence Basics •RSI measures momentum (overbought/oversold conditions). •Divergence occurs when the RSI and price action "disagree": oBearish divergence: Price makes higher highs, but RSI makes lower highs → momentum is weakening even as price climbs. oBullish divergence: Price makes lower lows, but RSI makes higher lows → momentum is strengthening even as price drops. ________________________________________ ✅ Triple Divergence •A triple divergence means this mismatch happens three distinct times in succession. •It shows a persistent, building contradiction between price and momentum. For example: •Bearish triple divergence: oPrice: Higher high → Higher high → Higher high oRSI: Lower high → Lower high → Lower high ➝ Suggests the uptrend is running on fumes, momentum is fading, and reversal risk is high. •Bullish triple divergence: oPrice: Lower low → Lower low → Lower low oRSI: Higher low → Higher low → Higher low ➝ Suggests sellers are losing steam, and a trend reversal upward may be near. ________________________________________ ⚠️ Why It Matters •Daily timeframe divergences carry more weight than intraday ones because they reflect broader sentiment. •A triple divergence is relatively rare and stronger than a single divergence. •Traders often see it as a warning of a major reversal or at least a significant correction ahead. Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.