📊 When does the market reverse? Identify with Doji candles + RSI + Volume

The market does not reverse randomly — there are always signals appearing beforehand if you are patient enough to observe 👀. Below are the 3 strongest signals that help you recognize the bottoming phase – about to reverse upwards:

🕯️ 1. Appearance of Dragonfly Doji candle

Long lower shadow, small body — indicates strong selling pressure but no longer overwhelming.

Buyers have pushed the price back up before the candle closes → Recovery signal.

More effective if it appears after a series of red candles.

📉 2. RSI falls into the oversold zone

RSI < 30 = the market is oversold, likely to bounce back.

If there is a bullish divergence (price creates a new low but RSI does not create a new low) → selling pressure has weakened.

RSI starting to “turn up” is a sign of buyers returning.

📉📉 3. Selling volume decreases

Price continues to decline, but selling volume is getting smaller → sign that the market is “losing strength”.

If there is a sudden increase in buying volume afterwards → the likelihood of reversal is even higher.

→ Especially strong if combined with a confirming bullish candle (like bullish engulfing).

✅ Conclusion: Reversal signals will be clear when 3 factors align

When you see:

✅ Dragonfly Doji appears at the bottom

✅ RSI is oversold and starting to bounce back

✅ Selling volume weakens, buying volume increases

→ The probability of a price increase reversal is very high!

🎯 Strategic action:

📌 Observe confirming candles after Doji — if it is a strong green candle, you may enter a trade.

🛒 Open a Long position early with a stop-loss set below the tail of the Doji.

💰 Take profit at resistance zones (or according to MA/Fibo).