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Setups - Bullish RSI Divergence

Overview​

The Setups - Bullish RSI Divergence profile highlights long setups where price action and momentum have recently diverged in a bullish way. Only confirmed bullish RSI divergence signals from the last two trading sessions are included, helping keep the profile focused on timely reversal and recovery candidates.

These results also require clean setup conditions, including strong risk/reward, a clearer upside path, and enough liquidity and volatility for the move to follow through.

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This profile updates in real time and applies filters automatically to highlight long setups with confirmed bullish RSI divergence, favorable risk/reward, and a clearer path to the projected target. It can be used across all market sessions.

Strategy Focus​

  • Surface long setups with confirmed bullish RSI divergence from the last 1 to 2 trading days
  • Focus on names with favorable upside risk/reward and fewer barriers to resistance on the way to target
  • Identify reversal and recovery candidates where momentum is improving beneath price
  • Prioritize liquid, volatile stocks that can follow through once strength starts to expand
  • Combine strategy metrics, divergence signals, and group context to refine long-side review
  • Build watchlists around timely bullish setups rather than older, already extended divergence signals

Filters Applied​

This profile applies multiple layers of filters to keep the results focused on recent bullish reversal conditions:

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Ensures the stock is liquid and active enough for long setups to follow through cleanly.
  • AI - Alpha Strategy = Long: Requires MarketAlpha to detect a long-biased setup.
  • AI - Risk/Reward ≥ 2, AI - Path to Target ≤ 1: Keeps only setups with strong upside potential relative to risk and limited barriers between price and target.
  • Bull RSI Divergence Days = 1-2: Requires a confirmed bullish RSI divergence signal from the last two trading sessions.

These filters keep the profile centered on recent bullish divergence setups with cleaner upside structure.

Metrics Used​

Strategy Metrics​

  • AI - Alpha Strategy: Shows whether MarketAlpha currently identifies the setup as long-biased.
  • AI - Risk/Reward: Measures the projected upside relative to the stop.
  • AI - Path to Target: Counts how many key barriers remain between price and the projected upside target.

Divergence and Technical Signals​

  • RSI Divergence 14 Days: Tracks bullish and bearish divergence, including hidden divergence, between price and the 14-day RSI. In this profile, it is used to confirm recent bullish divergence and its timing.
  • Universal Pattern Detection: Adds bullish pattern context that may reinforce the divergence signal.
  • Tight Range: Flags recent compression that can lead to stronger upside expansion once the move confirms.

Price Action and Volume Context​

  • Change Pre Market (%): Shows whether strength is already building before the regular session.
  • Change From Close (%): Tracks current strength relative to the previous close.
  • Volume All Hours: Confirms full-session participation across pre-market, regular, and post-market trading.
  • Relative Volume: Helps show whether the recovery is supported by stronger-than-normal activity.
  • Dollar Volume Rank: Keeps the most liquid and actively traded names near the top.

Group and Relative Strength Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Show whether short-term group behavior is also supportive.
  • Industry Rating 1 Year, Theme Rating 1 Year: Add broader context around longer-term group leadership.
  • Relative Strength 1 Day, Relative Strength 1 Year: Help compare short-term and long-term strength.

Fundamentals and Timing​

  • MarketAlpha Rating: Composite view of overall technical and fundamental quality.
  • EPS Rating, Sales Rating, Profit Rating: Help show whether the bullish setup is also supported by stronger business performance.
  • Accumulation/Distribution Score: Tracks institutional flow, where stronger readings can reinforce upside pressure.
  • 52 Week High (%): Shows how close the stock is to its yearly high, which helps frame recovery or breakout potential.
  • Next Earnings In Days: Adds timing context around possible event risk.

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to keep the most liquid and active bullish divergence setups at the top.

Practical Use Cases​

  • Find recent bullish RSI divergence setups before the move becomes obvious
  • Focus on long candidates with cleaner upside structure and stronger reward-to-risk
  • Monitor reversal setups where momentum is improving beneath price
  • Build watchlists of liquid stocks showing fresh bullish divergence
  • Strengthen long-side review with group support, volume confirmation, and strategy metrics
  • Use Multi-Charts to validate divergence, structure, and upside follow-through