This is what we are waiting for now to happen
RSI Divergence with the price
-The RSI has to go overbought above 80 at the initial impulse leg
-And then at the second HHC we need to see divergence but the RSI cannot be overbought above 80 at the resistance area
And the MACD (blue line) stay flat or start having a negative slope(tenting lower)
What we mean by saying "impulse leg" we do not just look at the price action but also in the behavior of MACD histogram which indicates a certain type of momentum strength
Look that smooth curved histogram
Its kinda subjective how this looks and how we identify "smooth"... I am working on how i can calculate that distance between MACD and signal line so we can have an accurate objective signal so we can actually create an algorithm out of it.
RSI Divergence with the price
-The RSI has to go overbought above 80 at the initial impulse leg
-And then at the second HHC we need to see divergence but the RSI cannot be overbought above 80 at the resistance area
And the MACD (blue line) stay flat or start having a negative slope(tenting lower)
What we mean by saying "impulse leg" we do not just look at the price action but also in the behavior of MACD histogram which indicates a certain type of momentum strength
Look that smooth curved histogram
Its kinda subjective how this looks and how we identify "smooth"... I am working on how i can calculate that distance between MACD and signal line so we can have an accurate objective signal so we can actually create an algorithm out of it.
Note
Our resistance... 2.24 extension of the HL of the consolidation zoneAs you can see our pattern is slowly tend to be formed in the 1H time frame also
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.