This Secret RSI Screener Spots Reversal Trades Early

Why It Matters

Early identification of reversal points lets traders position ahead of market moves, improving risk‑adjusted returns and informing option strategies.

Key Takeaways

• Bar Charts launches RSI divergence screener for early reversal detection
• Screener combines RSI and MACD with six‑month swing pivot points
• Filters include market cap, volume, and proximity to 50% RSI threshold
• Weighted alpha highlights potential pain or upside in candidate stocks
• Divergence requires longer timeframes, emphasizing patience and structural discipline

Summary

The webinar introduced Bar Charts’ newest tool – an RSI divergence screener designed to flag potential trend reversals before they fully develop. By pairing the Relative Strength Index with MACD crossovers and anchoring the analysis to six‑month swing highs or lows, the screener aims to capture the moment momentum shifts direction. Key features include market‑cap and volume filters, a focus on stocks approaching the 50% RSI mark, and an acceleration metric that highlights rapid changes in momentum. Weighted alpha scores further differentiate candidates that may still be in pain from those poised for upside. John R demonstrated the workflow using real‑time examples such as TKO, ABV, and American Tower, showing how a rising RSI crossing above 50, followed by a MACD crossover, signals a bullish reversal. He also explained divergence – when price makes new lows or highs while RSI does not – as a critical, longer‑term confirmation that demands patience. For traders, the screener offers a systematic way to isolate high‑probability reversal setups, align option strike selection, and manage risk through disciplined pattern recognition and structural break‑out analysis.

Original Description

Discover a powerful new Barchart stock screener built specifically to identify RSI

divergence candidates and streamline your trade selection process. In this session, John Rowland, Barchart's Senior Market Strategist, will show how the screener isolates both bullish and bearish divergence setups in real time, helping you uncover potential reversals before they gain broader attention.

He'll break down how RSI divergence reflects shifts in momentum and how to validate those signals using additional technical analysis, including MACD alignment, support/resistance, and pattern recognition. You’ll understand how to separate high-quality setups from noise. Plus, you’ll also learn how to use the screener to seek opportunities within the broader market context.

John will also explore options strategies tailored to divergence setups, adjusting risk based on structure and conviction. Finally, we’ll compare two distinct approaches: aggressive bottom-picking for higher reward potential versus waiting for confirmation bounces to improve probability and better manage risk.

Don't miss this opportunity to test-drive Barchart's new investing idea screener and learn how RSI divergence probabilities can turn opportunities into profits.

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