Volume Exhaustion RSI Reversal Strategy

Key Features:

Volume Logic:

1. Identifies two consecutive red bars (down periods) or green bars (up periods)

2. First down or up bars has the highest volume of the three

3. Volume decreases on the second down or up bars

4. Current (third) bar is green for up Reversal or red for down Reversal with higher volume than second bar

RSI Logic:

Uses standard 14-period RSI

Detects "V" shape pattern (decline, trough, rise)

Requires trough value <= 30 (oversold condition) or <= 70 (overbought condition)

Current bar shows RSI rising from trough

Execution:

Enters long/Short position when both volume and RSI conditions are met

Plots green "BUY/SELL" labels below the trigger candle

Visualization:

Green "BUY/SELL" labels appear below qualifying candles

Strategy positions shown in the strategy tester

How To Use:

Apply to any timeframe (works best on 5M-15M charts)

Combine with price action confirmation for example when candle 3 closes above candle 2 for "BUY" Or when Closes below for "SELL"

Ideal for oversold reversals in downtrends

Works best with volume-based assets

Note: The strategy enters at the close of the trigger candle. Always backtest before live trading and consider adding stop-loss protection.