# RSI Divergence Journaling for Reversals

> RSI divergence is a classic reversal setup. Here is how to journal these trades to filter out fakeouts and improve your accuracy.

**Tags:** rsi, divergence, reversals, technical-analysis
**URL:** https://traderjournal.app/technical-indicators/rsi-divergence-journaling-for-reversals

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# RSI Divergence Journaling for Reversals

The Relative Strength Index (RSI) is a popular momentum oscillator. While many traders buy when the RSI is oversold and sell when it is overbought, the most reliable setups come from RSI divergence.

RSI divergence happens when price makes a new high but the RSI makes a lower high, or when price makes a new low but the RSI makes a higher low. This indicates weakening momentum.

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## How to Journal RSI Divergence Setups

Because reversals are risky, you need to be precise when journaling divergence:

- **Divergence Type:** Note if it is regular divergence (trend reversal) or hidden divergence (trend continuation).
- **RSI Peak Value:** Record the exact value of the RSI peaks.
- **Support and Resistance:** Note if the divergence occurred at a major horizontal level or Fibonacci level.

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## Analyzing the Win Rate

Reversal strategies often have a lower win rate but a higher risk-to-reward ratio. Your journal will show you if this is true for your trading.

If your win rate with RSI divergence is 40% but your average win is three times larger than your average loss, the strategy is highly profitable. A journal helps you maintain confidence during drawdown periods by showing you this math.

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## Tracking Session Volatility

Divergence setups can behave differently depending on the market session. By logging the session (London, New York, or Asian), you can see if divergence trades are more reliable when volatility is high or when the market is slowing down.

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Trader Journal for MT4 and MT5 automatically logs your trade execution times and sessions, making it easy to see when your RSI setups perform best.

Download it today at android.traderjournal.app or ios.traderjournal.app.