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Bearish RSI Divergence

Overview​

This profile tracks groups where a majority of companies have confirmed bearish RSI divergence, signaling potential overbought weakness or exhaustion within recent trends. It surfaces clusters of structural fragility and ranks them by the percentage of confirmed bearish divergences.

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This profile filters for Negative RSI Divergence 14D (%) > 50, highlighting groups in which more than half of the companies have shown bearish RSI divergence over the past 1–2 days. Results are sorted by divergence percentage in descending order.

Strategy Focus​

  • Identify groups showing momentum deterioration beneath the surface of price trends
  • Surface potential exhaustion setups where upside is fading despite new highs
  • Combine divergence with breakdown signals, accumulation shifts, or low volume
  • Monitor pre-market and intraday pullbacks in divergence-heavy groups
  • Spot early warning signs ahead of deeper reversals, especially near earnings
  • Prioritize groups where AI setups and real-time weakness confirm divergence-based caution

Filters Applied​

This profile applies a single structural momentum filter:

  • Negative RSI Divergence 14D (%) > 50: Only includes groups where more than 50% of constituent companies show confirmed bearish RSI divergence from the last 1–2 days.

This isolates zones of broad weakening momentum and potential topping patterns.

Metrics Used​

Structural Divergence Signal​

  • Negative RSI Divergence 14D (%): Percentage of companies with confirmed bearish RSI divergence — the core signal used for filtering and sorting.

Group Identity & Structure​

  • Industry / Theme: Identifies the industry or theme grouping.
  • Tickers: Number of companies within each group.

Price Movement​

  • Change Pre (%): Pre-market movement — useful for spotting early rejection or confirmation of weakness.
  • Change From Close (%): Regular session move — helps track if divergence is leading to real selling pressure.

Group Ratings & Strength Trends​

  • Group Rating 1 Day: Real-time strength — used to confirm short-term breakdown behavior.
  • Group Rating 1 Year: Long-term strength score — shows if weakness is forming within prior leaders or persistent laggards.

Relative Strength Metrics​

  • Rel. Strength 1 Day 90+ (%): Percent of companies still showing strength — useful for spotting internal contradictions.
  • Rel. Strength 1 Year 90+ (%): Long-term outperformers — may indicate potential topping zones.

Volume & Flow Confirmation​

  • Total Volume (%): Percentage of daily market volume — supports conviction or distribution diagnosis.
  • Relative Volume: Current volume vs. average — confirms intensity of divergence reaction.

Return Context​

  • Return Year to Date (%): YTD performance — helpful in understanding whether divergence follows extended rallies.

Fundamental Quality Snapshot​

  • EPS Rating: Recent and long-term earnings quality — helps identify whether divergence aligns with weakening fundamentals.
  • Sales Rating: Revenue growth strength — relevant when fading overheated names.
  • Profit Rating: Margin quality — potential red flag when paired with divergence.
  • Accumulation/Distribution Score: Institutional flow — confirms whether divergence aligns with distribution.

Earnings & Setup Context​

  • Reports Earnings Within 1 Week: Detects near-term catalysts that may break or confirm divergence trends.
  • Top Alpha Setups: Tracks if AI strategies confirm breakdown setups in divergence-heavy groups.

Breakout/Breakdown Activity​

  • Last Price > Prev. High (%): Identifies groups where new highs are forming — useful to contrast against hidden weakness.
  • Last Price < Prev. Low (%): Detects breakdowns that may confirm divergence.
  • Tight Range (%): Measures low-volatility setups — useful for timing breakdown resolutions.

Default Sorting Logic​

Results are sorted by Negative RSI Divergence 14D (%) in descending order — putting the structurally weakest momentum groups at the top.

Practical Use Cases​

  • Spot hidden structural weakness in strong-looking groups showing bearish divergence
  • Build watchlists of potential reversal candidates for short bias or hedge setups
  • Use Ticker Screener to examine companies contributing to divergence signals
  • Open Multi-Charts to compare topping patterns across weak groups
  • Investigate volume and accumulation breakdowns in Group Viewer alongside divergence
  • Prepare for earnings risk or short-term pullbacks in divergence-heavy clusters