When the price and the oscillator make higher bottoms, they converge


The opposite of “divergence.” When the price and the RSI (or another momentum indicator) both trend in the same direction, they converge. For instance, when both price and RSI hit new highs together they are said to display “convergence.”

In an up trend, convergence on the RSI indicates the probable continuation of the up trend. Also, when the indicator forms higher low in sync with the price (see chart example).

When price and the RSI oscillator forms a lower top simultaneously that qualifies for a bearish convergence or down trend convergence i.e. the new decline in price is confirmed by momentum.