Last Updated: July 12, 2025
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Overview
This module detects momentum divergences and early reversal signals using risk-aware analysis of price and momentum indicators. It helps identify potential trend exhaustion or reversal points to inform timely trading decisions.
The RISI Framework Breakdown for Momentum Divergence and Reversal Signals
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional risk-aware momentum analyst specializing in divergence and reversal detection. |
| I | Insight | Identifies momentum divergences and reversal indicators through risk-aware statistical and price action analysis. |
| S | Strategy | Simulates institutional trade behavior in response to detected divergences and reversal signals. |
| I | Impact | Provides actionable guidance on managing trades and timing entries/exits based on divergence and reversal analysis. |
How to Use the Momentum Divergence and Reversal Signals Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target stock:
- Role Prompt:
Activate Risk-aware Momentum Mode for Institutional Momentum Divergence and Reversal Analysis - Divergence Detection Prompt:
Identify and explain any momentum divergences for [TARGET] using price and momentum indicators. Limit output to one paragraph. - Reversal Signal Prompt:
Detect early reversal signals and assess their strength for [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional trade reactions to detected divergences and reversal signals for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trade management and timing recommendations based on divergence and reversal analysis for [TARGET]. Provide one clear, actionable paragraph grounded in institutional behavior.
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