This is a good chart for analyzing the RSI for trend reversals on both ends
for Tops it consistently diverges, this can def be early so certainly not a flawless leading indicator - but even when its early it often has a short term reversal
- white dots on RSI correspond with tops / peaks
but another interesting application I learned from a trader in a private group is the RSI as a resistance line and using it for breakouts.
- look at the white lines on RSI at the tail, notice the peaks bounce off the resistance all the way until the short term bottom, then will violently break through the resistance line - check price levels at these inflection points and they often correspond with a trend reversal.
for Tops it consistently diverges, this can def be early so certainly not a flawless leading indicator - but even when its early it often has a short term reversal
- white dots on RSI correspond with tops / peaks
but another interesting application I learned from a trader in a private group is the RSI as a resistance line and using it for breakouts.
- look at the white lines on RSI at the tail, notice the peaks bounce off the resistance all the way until the short term bottom, then will violently break through the resistance line - check price levels at these inflection points and they often correspond with a trend reversal.