Identifies trend exhaustion through price-momentum divergence
| Strategy Type | RSI Divergence Trading / Momentum Reversal Strategy |
| Market Outlook | Identifies trend exhaustion through price-momentum divergence |
| Risk Profile | Moderate - counter-trend entries require discipline |
| Reward Profile | High reward potential from catching trend reversals early |
| Time Horizon | Intraday to swing (hours to days) |
| Capital Requirement | Moderate (₹1,50,000 - ₹4,00,000) |
| Margin Type | MIS for intraday divergence trades; NRML for swing positions |
| Best Used When | Price makes new highs/lows but momentum fails to confirm, suggesting exhaustion |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Intraday | 15-minute and hourly for day trading setups |
| Swing | 4-hour and daily for multi-day positions |
| Confirmation | Multiple timeframe divergence alignment |
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