RSI Divergence Trainer

Price just pushed to a new high or low at the edge of the range. Is RSI confirming that push, or lagging behind it? Decide, get graded, watch the next 8 bars. RSI here is J. Welles Wilder's original 14-period, Wilder-smoothed calculation from New Concepts in Technical Trading Systems (1978), with his own 70 and 30 as the extreme lines. What you're drilling is his failure swing: a second push to a new extreme where RSI does not confirm with a matching extreme of its own. That gap between the price line and the RSI line underneath it is the whole trade.

How it grades. 5 situations, drawn at random. Bearish divergence: price makes a higher high than its last push while RSI, both readings above 70, makes a lower high of at least 3 points. Fade it: short the close back inside, stop past the wick, first target the pullback between the 2 pushes, second target the base the move started from. Bullish divergence: the mirror at a low, RSI below 30 and at least 3 points higher on the second touch. RSI confirms: price makes a new extreme and RSI matches or beats its own prior extreme, still pinned past 70 or under 30. Wilder's failure swing needs the gap between the 2 lines; without it, a push with confirming momentum is not a signal to fade. No touch: RSI sits between 35 and 65 and price never reaches a tracked extreme. Nothing to grade. Hard mode drops the printed RSI values at each push so you're reading the shape of the line, not the numbers next to it. Keyboard: L S N, then Enter for the next rep.

Educational tool only, not financial advice. Charts are synthetic and built to show textbook failure swings. Live RSI can stay pinned past 70 or 30 for a long stretch on a trend day, divergence or not.

Built by Jason Parker, founder of Trading Ranges.

Built by Jason Parker, founder of Trading Ranges.