These divergences between the RSI and price action are powerful reversal signals.

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Relative Strength Index (RSI) divergence is a technical analysis tool used to identify potential trend reversals in financial markets. It is based on the idea that as price trends in one direction, momentum (as measured by the RSI indicator) should follow the same direction. Divergences occur when the price is making a new high or low, but the RSI is failing to confirm it, and this is seen as a potential signal of a trend reversal.

There are two types of RSI divergence: bullish divergence and bearish divergence. Bullish divergence occurs when the price is making lower lows, but the RSI is making higher lows, indicating that the underlying momentum is strengthening and a potential reversal to the upside is imminent. Bearish divergence occurs when the price is making higher highs, but the RSI is making lower highs, indicating that momentum is weakening and a potential reversal to the downside is imminent.

I like to use divergences in combination with support and resistance leves or Fibonacci.
For example, if a bearish divergence forms at resistance, you can be pretty sure that price will go on a pullback. 

It's important to note that RSI divergence is not a perfect indicator and should not be used as the sole basis for making investment decisions. It should be used in conjunction with other technical analysis tools and a thorough understanding of market trends and conditions. 

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