How Can RSI Be Combined with Volume Analysis to Confirm a Dead Cat Bounce? ▴ Learn

How Can RSI Be Combined with Volume Analysis to Confirm a Dead Cat Bounce?

The combination is powerful. During a dead cat bounce, the RSI might briefly rise above 50, but if the rally is accompanied by low volume and the RSI fails to reach 70, the lack of conviction is confirmed.

A subsequent drop in price with a sharp drop in RSI and a spike in volume is a strong confirmation of the bounce's failure and the downtrend's continuation.

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