2 June 2026
A Practical Checklist for Bullish Momentum Divergence
Five checks we use before treating a bullish RSI divergence as study-worthy.
First, confirm that price printed a lower low while RSI printed a higher low on the same lookback. Vague 'slanting' without clear pivots is not enough.
Second, require the divergence to appear after a measurable impulse down—not inside a sideways grind where oscillator noise dominates.
Third, note nearby structure: prior demand, session lows, or a measured move target. Divergence alone is a context clue, not a complete plan.
Fourth, write an invalidation level before imagining the upside. If you cannot name it in one sentence, the setup is not ready.
Fifth, wait for a reactive price cue after the divergence forms. Teaching patience here prevents early entries that ignore continued selling.