The biggest problem when trading this time is finding the correct reversal point. The price moves a lot, but it’s hard to know exactly which point will cause the price to change direction. If you enter too early, you might miss out on income. If you enter too late, you might miss the opportunity. This is why many people look for more precise methods to confirm reversal points.

The truth is that professional traders don’t just guess. They use Divergence, a technique that looks for contradictions between price and momentum. When the price makes a new high, but the indicator doesn’t follow through, that’s a dangerous sign for further upside movement—and it’s a fairly safe reversal point.

RSI is the first indicator people commonly use. It gives a value between 0 and 100. Most of the time, we look at Overbought (above 70) and Oversold (below 30). But the problem is that in a market with a strong trend, RSI may continue to stay Overbought for a long time, which can cause us to sell too soon. A better approach is to look at RSI Divergence: when the price makes a new high but the RSI doesn’t make a new high along with it, that’s a sign the price may turn back downward. Conversely, when the price makes a new low but the RSI doesn’t make a new low to match it, that’s a bullish reversal signal.

MACD is another popular and very useful indicator. It shows both trend and momentum. Most of the time, we look at the Histogram, which shows the difference between MACD and the Signal Line. When the price continues to rise but the Histogram decreases, that’s a sign that momentum is weakening. And when the price makes a new high but the Histogram isn’t as high as the first time, that’s Bearish Divergence, indicating a potential reversal downward. Similarly, in a downtrend, when the price makes a new low but the Histogram isn’t as low as the first time, that’s Bullish Divergence, indicating a possible reversal upward.

OBV is a measure of trading volume. Often, the price rises but OBV falls, which means people are gradually selling off. This is a warning sign that this rise may not be stable. On the other hand, when the price falls but OBV rises, it means people are gradually buying back in—showing that a bullish reversal may be close.

Combining these three indicators together helps us see reversal points more clearly. You don’t need to rely on guessing or news—just look at the contradictions between the price and the indicators.

If you really want to try these techniques, there are many trading platforms that let you try for free. For example, MiTrade offers a demo account with real-time charts and comprehensive analytical tools, so you can practice with different indicators without risk. This is a great way to learn before using real money.