One thing I think a lot of traders get wrong is putting too much weight on bearish RSI divergence on the 1H. A 1H divergence is something I watch, but I NEVER let it override the bigger picture by itself. Here are the four things I look at: 1. Price structure comes first. If price just made a strong impulsive move and is consolidating near the highs, that still carries more weight than a lower-timeframe RSI divergence. 2. Higher timeframe RSI matters more. If the 4H, daily or weekly RSI is NOT showing the same divergence, I’m much less concerned about what I’m seeing on the 1H. 3. Watch volume. Declining volume during consolidation is normal. What matters is whether volume expands when price finally breaks the structure. 4. RSI needs price confirmation. Bearish divergence becomes much more meaningful when price actually loses support or breaks structure. RSI can cool down simply because price stops moving vertically. That doesn’t automatically mean price is ready to collapse. Use RSI as a warning light. Use structure to determine direction. #Crypto #TechnicalAnalysis #RSI #PriceAction #MarketStructure #TradingPsychology #Altcoins
Eric Van Tassel (Not a Financial Advisor!)Share

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