β€Ή All Posts
Nikita (SEBI RA)

19th Nov Β· SEBI-Registered Analyst

Volume + RSI Divergence – Early Trend Reversal Indicator πŸ”„πŸ“Š

πŸ“Š When RSI divergence combines with volume confirmation, it becomes one of the strongest early signals of an upcoming reversal. βœ… Key Characteristics: Price makes new high/low. RSI fails to confirm new high/low (divergence). Volume starts decreasing during the final leg of the move. βœ… Interpretation: Momentum is weakening + volume drying up β†’ institutions stepping back β†’ reversal likely. πŸ“Œ Example: Price makes higher high at β‚Ή1420, RSI forms lower high, and volume declines β†’ bearish divergence β†’ correction begins. 🧠 Tip: Best entries appear when divergence forms near major S/R or trendline.

KOTAKBANK

#WatchOutFor
450 likesΒ·64 comments