Nifty50 – Triple Positive RSI Divergence. Major Bottoms.
In simple terms, a RSI Positive Divergence is New lows on Nifty but higher bottoms on Daily RSI.
This setup has worked brilliantly to spot Risk-Reward Entry Points near Bottoms in the last 10 years.
Examples below
1) 2016-2017
The Triple RSI Divergence on the 2016 Budget Day Bottom.
I did a presentation called – Beg Borrow Steal and Invest.
Old Video there on my YouTube Channel.
RSI Positive Divergence post demonetization bottom.
2) 2018-2019
Worked brilliantly in the Nifty bottoming out in 2018 and 2019.
Corporate Tax Rate Cuts gave that steroid shot in 2019.
Oversold RSI became deeply oversold in March 2020.
Price went much lower, but the bottom was made in 1-2 weeks.
3) 2022-2023
The RSI divergences worked well in 2022, after the Russia-Ukraine war started.
Solid recovery in Nifty after the Positive Divergence in March 2023.
4) 2025-2026
RSI Positive Divergence around the Trade Tariff by US in March-April 2025.
Gap downs and big Gap Ups.
Currently, the Nifty has made a Triple Positive Divergence.
Observation
In previous instances of RSI Positive Divergence and Triple Positive Divergence, the bottom is made in 2 days to 2-3 weeks.
2020 price went much lower.
Bottom in 2 week Confirmations – Nifty starts crossing prev day or week highs.
All are major bottoms.
Conclusion
Over the last 10 years RSI positive divergences have shown a bottom made in 2-3 weeks and 2-3% from the Divergence.
2013 bottom was also a Triple Divergence.
Even in 2008, it did in 2 weeks.
Made sharper lows like 2020.
It’s a rare RSI Triple Divergence.
For Nifty 21500-22000 is a support band.
Election lows/Trade Tariff lows. Technically, a Beg Borrow Steal and Invest.
Flip-Flop on War daily makes it tough to THRUMP the table and say Buy, but at least history suggests pain could be over in 2-3 weeks.
Please do your own risk management, Due Dilligence, and research.
Technical Analysis is all about Probabilities and Risk-Reward. Long Term Investors – Be Patient and can think of more Equity Allocation Traders
Manage Risk and look for confirmations by Price or War News.
