⚡ Intraday · Momentum + volume
RSI + Volume Oscillator
RSI signals overbought/oversold; Volume Oscillator confirms that participation supports the move. Trade RSI reversals only when Volume Osc agrees with directional flow.
Setup
- Chart: 5-min or 15-min with RSI(14) and Volume Oscillator (short EMA − long EMA of volume) in separate panes
- Watch for RSI crossing back from oversold (< 30) or overbought (> 70) zones
- Volume Oscillator > 0 and rising indicates fresh volume supporting the move
Entry
Long: RSI crosses above 30 from below AND Volume Oscillator turns positive on that same bar or the next. Short: mirror — RSI crosses back below 70 from above with negative Volume Osc.
Exit
Long exit when RSI reaches 70 or Volume Oscillator turns down. Short exit at RSI 30 or Volume Osc up.
Stop-loss
Below the reversal candle's low (long) / above its high (short). Tighter is fine — around 0.5-0.8× ATR.
When it works
- Extreme RSI readings after a sharp move — reversal probability is highest
- Volume Oscillator confirms — real participation, not stale grinding
- Mid-cap stocks with clean momentum episodes
When it fails
- Strong trending days — RSI can stay pinned in overbought/oversold for hours
- Illiquid names where Volume Oscillator is noisy
- RSI divergence ignored — always check for divergence before entering
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.