Volume + RSI Divergence β Early Trend Reversal Indicator ππ
π When RSI divergence combines with volume confirmation, it becomes one of the strongest early signals of an upcoming reversal.
β
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.
β
Interpretation:
Momentum is weakening + volume drying up β institutions stepping back β reversal likely.
π Example: Price makes higher high at βΉ1420, RSI forms lower high, and volume declines β bearish divergence β correction begins.
π§ Tip: Best entries appear when divergence forms near major S/R or trendline.
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