Bullish volume divergence
BullishPrice keeps making lower ground while volume steadily dries up — the mirror of the bearish volume divergence, read as sellers running out
Most patterns resolve their way only 50–60% of the time — nearly half miss.
Textbook shape
How to read it
Price keeps making lower ground while volume steadily dries up — flagged when the back half of the window averages more than 30% less volume than the front half.
Falling on shrinking volume suggests fewer new sellers arriving, which reads as supply mostly spent. It is the upside-down twin of the bearish divergence where price rises on drying volume.
It does not say price is about to rise. Selling pressure fading and buying pressure arriving are different claims — whether volume returns on an up bar is the follow-up to watch.
Real example
US stockMARADaily
Completed 2019-06-07
CryptoDOGE-USDDaily
Completed 2024-12-22
A window SQMATE's detectors actually flagged in past bars. It records a day that worked out — the same shape doesn't always resolve the same way.
On SQMATE
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Patterns aren't the whole story
The same shape doesn't always resolve the same way. It's safer to read it together with candles, volume, and market context — news, catalysts, flows.