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Catch Big Reversals Like a Pro Using the GOLDEN RSIHow to Catch Market Tops and Bottoms Using the GOLDEN RSI Indicator Trading market reversals can feel like a daunting task. But what if you had a secret weapon to help you identify tops, bottoms, and potential reversals with ease? Enter the GOLDEN RSI Indicator—a custom-built tool designed to revolutionize your trading strategy. In this tutorial, I’ll show you how to leverage this powerful indicator to spot reversal trades like a seasoned pro. What is the GOLDEN RSI Indicator? The GOLDEN RSI builds on the traditional RSI (Relative Strength Index) by adding optimized zones and visual signals that highlight potential bullish and bearish reversals. Unlike the standard RSI, which requires subjective interpretation, this indicator provides precise entry and exit signals by visually marking key market conditions. How to Use the GOLDEN RSI to Catch Market Reversals? Understand the Key Zones: Overbought Zone (Above 80): Signals a potential market top or reversal from bullish to bearish. Oversold Zone (Below 20): Indicates a potential market bottom or reversal from bearish to bullish. Neutral Zone (60-40): Consolidation phase where trends are less decisive. Spotting Bullish Reversals When the RSI dips into the oversold zone (below 20) and begins to reverse upward, the GOLDEN RSI will highlight a Bull signal. This suggests a potential upward move, ideal for long trades. Pro Tip: Look for confirmation with price action, such as a bullish candlestick pattern or a break of resistance. Spotting Bearish Reversals When the RSI climbs into the overbought zone (above 80) and starts to turn down, the GOLDEN RSI will mark a Bear signal. This indicates a potential downward move, perfect for short trades. Pro Tip: Combine with chart patterns like double tops or bearish engulfing candles to strengthen your confidence in the trade. The Hidden Power of Divergences Bullish Divergence: Price makes lower lows while the RSI makes higher lows. This signals potential bullish momentum. Bearish Divergence: Price makes higher highs while the RSI makes lower highs. This signals potential bearish momentum. The GOLDEN RSI visualizes divergences clearly, so you can spot them effortlessly. Use Risk Management Tools Set stop-loss levels below recent swing lows (for bullish trades) or above recent swing highs (for bearish trades). Use risk-reward ratios of at least 1:2 to maximize your profit potential. Real Trade Example Using GOLDEN RSI In the SPX 15-minute chart above, the GOLDEN RSI accurately identified: A Bearish Reversal near the market top, as the RSI entered overbought territory and started to fall. A Bullish Reversal as the RSI dipped into the oversold zone and recovered upward. These signals allowed for precise entry points, minimizing risk and maximizing rewards. Why the GOLDEN RSI is a Game-Changer Unlike generic RSI tools, the GOLDEN RSI is designed with traders in mind. It eliminates the guesswork by providing visual cues for market reversals. Whether you’re trading stocks, indices, or crypto, this indicator is a must-have in your toolkit. How to Get the GOLDEN RSI Indicator? Want to try it for yourself? Head over to TradingView and add the GOLDEN RSI Indicator to your chart. Use it alongside your favorite price action strategies to take your trading to the next level. Conclusion Reversals can make or break a trader’s portfolio. By mastering the GOLDEN RSI, you can confidently spot market tops, bottoms, and reversals with precision. Start using this custom indicator today and watch your trading results improve dramatically! Don’t forget to like, share, and follow me on TradingView for more tutorials like this one. Let’s catch those reversals together!
SP:SPXEducation
by thejamiul
20
Short Setup Masterclass: Perfect Retest of dOpenKey Observations 1.) Wave Structure & Flat Top Formation: The completion of a 5-wave structure aligns with Elliott Wave Theory's indication of a potential reversal or corrective phase. A flat top pattern at the 5th wave signifies a strong resistance level, which led to a structural break to the downside. 2.) Daily Open Retest: Price perfectly retested the daily open (dOpen) before rejecting it. This level now acts as a strong resistance, offering a favorable risk-to-reward (R:R) ratio for short entries. Stop-loss (SL) placement is ideal just above the daily open to minimize risk. 3.) Lack of Bullish Volume: Current ranging behavior lacks bullish volume, further supporting the bearish case for a continuation to lower levels. Support Zone & Confluence Factors The immediate target for this short trade lies at the confluence-rich support zone near $3.3184, identified by the following factors: 1.) Fibonacci Levels: 0.382 Fibonacci retracement aligns with this zone, confirming its significance. 2.) VWAP (Volume-Weighted Average Price): The VWAP from the swing high indicates $3.32 as a key level. 3.) Negative Fibonacci Extension (-0.618): Projecting from the recent impulse points to this area as a potential corrective target. 4.) December 16th High: This level now acts as a magnet for liquidity, increasing the likelihood of a revisit. 5.) Liquidity at Swing Low: The swing low at $3.3184 holds significant liquidity, which could be swept during a bearish move. 6.) Fibonacci Speed Fan (0.618): The 0.618 speed fan intersects around $3.32, adding further confluence to the zone. Trading Strategy Short Trade Setup: Entry: The ideal entry was at the dOpen retest. A short trade can now be initiated at the current price with a smaller position size. Stop-Loss (SL): Above the daily open to minimise risk. Take-Profit (TP): Targeting the confluence zone at $3.3184.
Short
by SiDec
4
BTC - Will Bitcoin Hold or Fold?Bitcoin has enjoyed a bullish 2024, reaching an all-time high (ATH) of 108K. However, the recent price action indicates a shift in momentum, with the market entering a phase of consolidation and correction. For the past 40 days, BTC has ranged between 90K and 108K, with the critical psychological level of 100K now acting as resistance. The structure of an ABC corrective pattern following a 5-wave downward impulse suggests the market is transitioning into a short-term bearish phase. Key Levels and Patterns: 1.) Head and Shoulders Pattern: A bearish Head and Shoulders pattern has formed, with 90K serving as the neckline. Once 90K is broken with significant volume, it will confirm the pattern, potentially accelerating the move downward. The target for this pattern aligns closely with the previously identified support zone at 84K–80K. 2.) Resistance at 100K: The psychological barrier of 100K has flipped to resistance, making it a critical level for bulls to reclaim. A sustained break above 100K with strong volume would indicate a possible trend reversal. 3.) Support Zone (84K to 80K): Multiple confluences align between 84K and 80K: Fibonacci Retracement (0.618): The 0.618 retracement level from the recent impulse low to the ATH is at $82,694.88. Trend-Based Fibonacci Extension: The 1:1 extension of the ABC correction points to 84K. Anchored VWAP: Calculated from the significant low at 52.5K, the anchored VWAP aligns near 81K. Fibonacci Speed Fan: The 0.618 speed fan from 52.5K to the ATH intersects around 80K, reinforcing this support zone. 4.) Liquidity Below 90K: The current range-bound movement has likely trapped many long positions above 100K, creating significant liquidity below 90K. A breakdown below 90K could trigger a liquidity sweep, driving prices rapidly toward the support zone at 84K–80K. Current Market Dynamics: Volume Analysis: Decreasing volume within the range highlights weakening bullish momentum. Confirmation of support at lower levels will require a substantial increase in buying volume. Bearish Momentum: The head and shoulders pattern, coupled with the ABC correction, signals bearish momentum that may persist into early to mid-January 2025. Neckline Support at 90K: A break below 90K would confirm the head and shoulders pattern, acting as a catalyst for further downside. Next Steps and Outlook: Short-Term Bearish Bias: Bitcoin is expected to continue its downward correction, with the head and shoulders neckline at 90K serving as a key pivot point. A confirmed break would likely drive BTC to the 84K–80K support zone. Long Opportunity at Support: Should BTC reach the identified support zone, it presents a high-probability long setup. Entry should be contingent on confirmation through: Increased buying volume. Bullish candlestick patterns (e.g., hammer, engulfing). Alignment with key moving averages and other technical indicators. Mid-Term Recovery Potential: After the correction, Bitcoin may resume its bullish trajectory. Key factors to monitor include: Reclaiming 100K as support. Overall market sentiment and macroeconomic conditions.
Short
by SiDec
Bitcoin Dominance - Falling Wedge Broken - Altseason is here #BTC.D (Bitcoin Dominance) #Analysis Description --------------------------------------------------------------- + Bitcoin dominance has formed a nice falling wedge pattern and support is broken successfully. + This was the moment that everyone was waiting for, in 2025 we are gonna see a huge bull run, greater than last bull run. + Falling wedge is a bearish pattern and the dominance has successfully broken down from the wedge and heading towards the next support at around 39% (This is gonna be a the peak of the alt season) + 2025 jan will be huge for altcoins. --------------------------------------------------------------- Enhance, Trade, Grow --------------------------------------------------------------- Feel free to share your thoughts and insights. Don't forget to like and follow us for more trading ideas and discussions. Best Regards, VectorAlgo
CRYPTOCAP:BTC.DShort
by VectorAlgo
theta midterm sell"🌟 Welcome to Golden Candle! 🌟 We're a team of 📈 passionate traders 📉 who love sharing our 🔍 technical analysis insights 🔎 with the TradingView community. 🌎 Our goal is to provide 💡 valuable perspectives 💡 on market trends and patterns, but 🚫 please note that our analyses are not intended as buy or sell recommendations. 🚫 Instead, they reflect our own 💭 personal attitudes and thoughts. 💭 Follow along and 📚 learn 📚 from our analyses! 📊💡"
Short
by Golden_candle
23/12/24 Weekly outlookLast weeks high: $108,403.98 Last weeks low: $92,261.97 Midpoint: $100,332.98 Last week we saw a swing fail pattern (SFP) of the week previous' high. Ever since then it's been a steady sell off throughout the week, mostly thanks to JPows FOMC statements despite a 25bps cut as forecast. BTC is now battling the 4H 200 EMA for the first time since the US election, a much needed pullback or the start of a further sell-off? Going into the holidays we should expect a lower volume as whales take some time off, retail will remain as crypto is shilled to family members over Christmas dinner so the market will continue to be interesting. The 4H 200 EMA is a key battleground, I would have hoped to see a better reaction off the moving average initially but maybe this is bad timing due to the holidays and lower volume, or the reluctance to open new trades while markets are shut etc. This week is obviously quiet in terms of data releases, there are various token unlocks ENA, IMX, FET and burns for some key altcoins such as ISP & BONK. I think the general consensus is that normal service will resume in January once everything opens back up. So for this week it's probably better to set alerts for key areas you want to get involved in, planning for when volume returns to the markets and when Trump takes office too. Merry Christmas to all and good luck!
by ProR35
NAS100USD Will Go Lower! Short! Here is our detailed technical review for NAS100USD. Time Frame: 1D Current Trend: Bearish Sentiment: Overbought (based on 7-period RSI) Forecast: Bearish The price is testing a key resistance 21,471.9. Taking into consideration the current market trend & overbought RSI, chances will be high to see a bearish movement to the downside at least to 20,314.7 level. P.S The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce. Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news. Like and subscribe and comment my ideas if you enjoy them!
OANDA:NAS100USDShort
by SignalProvider
1