RSI divergence occurs when the price of an asset moves in the opposite direction to the RSI indicator. Depending on the type of divergence spotted, this can signal a potential reversal in the market trend, either bullish or bearish.
The best RSI settings are typically a 14-period timeframe with 70 as the overbought level and 30 as the oversold level. These settings can be adjusted based on specific trading strategies.
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