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RSI vs. William's % Which One To Use, And When?Cryptohopper Newsletter Bitcoin’s rebound seems to have slowed somewhat, with a correction of more than 10%. However, the price now appears to be pushing higher again and is close to this month’s high. Depending on the kind of momentum indicator you have selected, you might or might not have taken advantage of this opportunity. In this week of technical analysis, we will look at two different momentum indicators: The RSI and Williams % and see which ones are the best to use and when. Without further due, let’s start by diving into the RSI! RSI The Relative Strength Index is one of the most used momentum indicators in trading. The RSI is a momentum oscillator that fluctuates between oversold and overbought . When RSI is below 30, it is generally considered to be oversold and at the right time to buy, and when it is above 70, it is usually regarded as overbought and a good time to sell. The RSI is significantly slower than William’s %, and as such, it can be used effectively on larger time frames to predict recovery from more significant market crashes. In a bullish period, though, the RSI might give minimal signals only. Let's now look at William’s % William’s % William’s % is another momentum oscillator that is frequently used by traders. Just like the RSI, this indicator oscillates between oversold and overbought zones. When this indicator is below -80, it is said to be oversold, and when it is above -20, it is said to be overbought. William’s % is faster and gets into oversold or overbought zones quicker and a lot more frequently than the RSI. As such, Williams % can be used very efficiently in a bullish market as it will quickly and efficiently mark each pullback the uptrend has. However, the indicator may provide too many signals in a bearish market, thus leading to significant losses. RSI + Williams % In conclusion, the RSI is better used on the more extended time frames in order to identify the reversal of significant crashes, while William’s % works better in an uptrend. What some traders do, and it should generally be avoided, is using the two indicators together to provide a buy signal. For example, using both the RSI and Williams % and then buying when they are both oversold. However, this can be very dangerous, as Williams % will show oversold each and every time the RSI does too, and as such, you are really only relying on a single indicator instead of two. With that out of the way, it is possible to use both indicators together on different time frames successfully, but we will cover this another time!
Long
by cryptohopper
2
The Different Ways To Trade The StochasticsCryptohopper Newsletter The market has been very volatile over the past month with Bitcoin crashing 65% to 3,800$ . The price has since made an astonishing 80% recovery in one week from March 13th until the 20th. Following the recovery to almost 7,000$; the price has continued to range between 6,900$ and 5,600$. During the crash, many traders have attempted to buy the dip, just to see it dip even lower. Today we will explore how you could mitigate this risk by using stochastics with region crossover. Without further due, let’s get into how you could have traded this past month by using the normal stochastics and the stochastics with region crossovers. Different stochastic strategies There are many different ways to use stochastics. Today we will explore 2 of them, along with their advantages and disadvantages: Stochastics oversold: This strategy involves getting into a position when the stochastics drop below 20. This strategy works better when the broader trend is in your favor, as it is expected for the price drops to be shortlived and to continue moving higher. The advantage of this is that you will be getting in at the lower prices in an uptrend. This strategy can be very dangerous during a market crash though, or when the price is bearish in general as you will be getting in the trade, while the price will continue to drop further . This can be seen very well in the first three trades where the price continued to drop lower even though the stochastics were already oversold. Stochastics with region crossover: This strategy involves getting into a position once the value of the asset in question rises again above 20. This strategy can work very well in a downtrend but also in an uptrend depending on the severity of the pullback. In a downtrend, this strategy increases the probability that you are entering the trade only when the momentum is back in your favor. This can be seen by the first three entries in the graph where the buy point was 7%, 8%, and 16% lower than with the oversold strategy In an uptrend, if the pullback is very large then this strategy will again ensure that the price will not continue [/b its descent once you enter. However, if the pullbacks are not very severe, then you will enter at a worse price point. Overall the stochastics with region crossovers is more conservative and can lead to higher profits when the markets are volatile, as it is the case right now. Join us at Cryptohopper, where you can automate both of these strategies along with many others!
Long
by cryptohopper
1
NCLH sweet tradingNow to note on some of my trades went, well not great due to the virus. HL options expired and everything pretty much dropped. Even though I had some bear options on amd and spce. The virus didn't give a dam about it and if you were a bear you were lucky a little if you weren't reading the virus early stages in China, which AMD dump was given. Now on to NCLH and why I'm bullish. First the news -On friday trump signed the 2trillion dollar stimulaus package with 4trillion set aside in case the 2trillion fails...hint hint it will fail. -Now NCLH and the cruise lines weren't in the relief help in the bill, so on Friday and today they tanked with fear - Trump has stated he will be buying/bailing them out with only NCLH leaving his mouth, so NCLH could be a safe accumulation phase and probably the most volital stock...I love it -NCLH, only one I heard, is proactive and leasing their ships to the US gov to fight the virus and help treat people. -One concern is that their staff has been reported lying about what NCLH is doing, yet the company told their emplyees to stop spreading rumors and the lies. Now the virus, yes the virus is needed to do TA with uncertain so lets cover global news on it. -USA becomes number one in case, yet still fewer deaths besides in major cites/high destiny population -Vaccine/treatment is suppose to come later this fall, yet the average time of a vaccine is over a year, so next year is likely candidate to end the virus/be able to treat it. -More and more world leaders are catching the virus and could cancel/delay the US elections. Now into NCLH TA -Side note I read that there have been alot of put sellers at the $10, yet take it with a grain of salt during this uncertainty and may be just stupid money against crusies. -Now overview on the lines: -the purple box is the range a bought NCLH on March 19 with the first blue horizontal line being a sell before it went to $20. -Green line at $9.88 is todays buy near market open with that insane dump with fear from friday one could say -Second blue line is the low of march 25-26 which could be a top with this buy in with the idea we could get into a tight range before making the big move. -First red box of 30% is from todays buy to the low mar 24 before it had its move to $20. The second one is from todays buy to the low of the trading range of mar 25-26 -Emas are still far apart and looks towards more downside -MACD looks like its gonna go bullish with a crossover as the selling platues out, could make another hill so still risky trade -RSI is oversold, but not deadly oversold, just oversold by today. -Volume is dropping and have an expected massive move soon since volume is still up there as today bulls hold the low $10 range. I'm bullish on NCLH cause it was hit one of the hardest since china came out with the virus early this year. From what I read NCLH is the most proactive crusie line and during this bear trend in the market, I believe sub $10 or whenever you are confident there is hugh potential and upside. Also going on the assumption as the president said they will bail/buy out NCLH after discussion and them leasing their ships out is postive news to accumulate on and could get a bigger cut when they get their releif. Long esposer may hurt, but during this time and with a cheap price this is a great swing trading stock during this market.
NYSE:NCLHLong
by nathanielx9
Overbought and oversold on XRPBTCUsing the Williams R% oscillator indicator since July 2019 we can see overbought and oversold states on XRPBTC. Here are two types of vertical lines: greens and orange. The green lines are the moment when the position should have been open and the oranges when it should have been close. The arrows show whether price should have risen or fallen according to the indicator. The conservative signal for a long position is when the line breaks up the bottom dashed and the -50.00 line. The signal for a short position is the mirror. At this time, the signal is for a long position from 27 Mar until the line breaks down the -50.00 line again. Note: Stop loss and take profits are only illustrative. Chart: D
Long
by Manuelsilvat
Short Term Bear Market Rally The next resistance is around 265 (dotted red line), then if passed, SPY could test a 50% fibonacci retracement back to near the 280 level (other dotted red line). SPY on the daily chart is looking strong with the Stochastic line coming off of oversold, the MACD signal line just being crossed, and it breaking from the previous downward channel. We are looking at a short term bear market rally. I don't see it lasting longer than another week or two. 280 will be a difficult resistance to pass, especially as bad economic news continues to surface. The underlying economic shock caused by COVID-19 will keep the bears in control.
AMEX:SPYShort
by PerryWave
Don't catch a falling knife or falling plane. Fasten seatbeltsWell, if there was any doubts that trading was much better than investing, this recent market correction certainly proves trading outperforms the investment "buy and hold" trainwrecks! Poor little retired investors who just saw their AC investments chopped in The chart I'm providing today is simple since I'm too busy trading that creating fancy charts. It's a day chart. We are seeing a descending triangle setting up for a formidable reversal pattern when the blood stops gushing from this bird. For AC, if you can't read minute charts, best wait for a confirmed reversal before risking a penny here. Not for the faint of heart or rookies. You need very short term trading abilities to make serious money. Wild volatility makes this a very profitable trade without having to risk short selling at or near the short term lows. Seriously oversold RSI of 11 on the day chart and numerous other time scales. Dangerous both long and short. Don't buy and hold. Don't short and hold here... Ladies and gentlemen, please fasten your seatbelts. The turbulence is far from over in the wider market and in the Canadian skies. Stay safe and hug your neighbours in a socially distant way!
TSX:ACLong
by UnknownUnicorn2413721
BTC Finding Strength On Daily ---> Will We See Halving Pump?Been calling for double bottom to play out in Stochastic RSI on daily timeframe. We can see we've done just that and then some! MACD trend showing exhaustion as MACD Line tests major support. 0.5 Fib level acting as current support. Expecting a large move to precede the halving in late May. Many alt coins will follow. Worth noting the increasing noise about BTC & energy waste. This could be a pawn used against it in the future & or black swan event. Will never stop btc but can reduce its adoption by forcing the majority of the world to use another asset... one that works with the banks... which could only be... (insert your favorite coin here ;)) Not on any bandwagon in particular but if you've been in this space for a minute you know how exciting and euphoric thing can get. Opportunities are all around.
COINBASE:BTCUSD
by MitchMilli
FANG Stocks| Facebook Oversold Bounce| Fed Rate Cuts?Evening Traders! Today’s technical update will be on Facebook with an oversold bounce coming to fruition, this is similar across the board due to the immense sell pressure. Points to consider, - Trend broke key 200 MA - Local resistance being tested - Local support at .50 Fibonacci - RSI approaching yearly lows - Stochastics in lower regions - Bull Volume influx Facebook broke its key 200 MA which plays a historical significance in determining a bear or bull trend. Currently the local resistance zone is being tested (market close) which is in confluence with the 200 MA. A close above will increase bullish bias. A rejection will technically put in a lower high, which is very bearish. Local support is at the .50 Fibonacci, this can be considered to be the nest logical support if the bears continue to control price. The RSI is trading at yearly lows; this level here technically indicates a short term bounce. Facebook’s stochastics is also trading in lower regions, can stay here for an extended period of time, however lots of stored momentum to the upside. Upon market close, there has been a clear influx in bull volume, signalling potential seller exhaustion for the short term, it would only be natural to have a relief rally at some point. Overall, in my opinion, Facebook and stocks across the board have a high degree of probability in having in oversold bounce. Oscillators are extended, local resistances needs to break otherwise lower highs will be set, which is extremely bearish. Will Fed rate cuts save the economy again? Please leave a like and comment, And remember, “The obvious rarely happens, the unexpected constantly occurs.” – Jesse Livermore
NASDAQ:META
by AzizKhanZamani
ETH- Pullback or march toward the NEXT MAJOR RESISTANCE LVLHello everyone! BTC dominace lvl has gone down a little and, we start to see more trading volume flow into retail's favorite crypro exchange coinbase as its trading volume increased 50% recently. Retail money is what makes the uptrend move sustainable! VPVR looks bullish as the price pierced through VA and both long term and short-term POC with long term trend line acting a strong support below. However, ETH is currently facing long term fib resistance (32.8) and previous support lvl . Furthermore, many indicators indicate the overextended status ( bollinger & ichi) and oversold status hovering around 75-80 on both daily and weekly timeframe In terms of magnitude, 8 straight weekly green candles is probably overheating. Next major resistance lvl is around 360. Buy on the dip within the buyzone if the price pullbacks. Please like and follow me if you find my analysis useful. Much appreciated!
by Libratus
BUY HAS @ 98.8 take +16%, stop -3%Hasbro is a big toy company, one of the largest in the world. Today is New York Toy Fair (21.02.2020) this may impact positively 1st quater of 2020 for HAS. The price on it's lows after weak earnings report, and it seems to me very pretty! Buy @ 98.8 Take @ 115.0 (+16%) Stop @ 95.0 (-3%) Close stop, long run! It may take a few months to get to the take, be patient. Low RSI. The stock price has crossed below the lower Bollinger Band, which gives us a buy signal. Lower support line @ 96.7 (D).
NASDAQ:HASLong
by Dolmatin1919
ROKU all out dumpTicker: $ROKU $ROKU dumped 20% in the last five trading days, all with a lower close than the day prior. Bears are in a great position especially with the help of the overall market weaknesss. A HUGE support ($116.26) is coming possibly on Monday, but definitely this upcoming week. Break that level and short is going to run with it. If we down to the extremes with 4 hour RSI under 20, I will potentially start scouting for an oversold bounce. I will be extremely picky because of the general market weakness and will monitor the correlation closely. Change the hourly trend with a higher low, and a high high; as well as break the pattern of the lower high every day pattern and that will be the first indication that a bounce will be playing out.
NASDAQ:ROKU
by DerekTradeEZ
1
BTC Double Bottom In Oversold Daily RSI & Fibonacci Following up from my previous BTC post I was looking at the possibilities of daily RSI forming a double bottom while the weekly timeframe RSI "cooled off". Fib extension looking to provide support at the .786. If we can do that I would expect to retest the last high around $10.5k. Bearish scenario could take us back to the $9,200's. Really is just about finding the best time to buy right now. Hype fuse isn't even lit yet.. Your grandma will be shilling coinz in the next bull cycle... could be sooner than later. Please Like & Comment ------> Lets Be Friends **even if we disagree** HAVE A GREAT DAY. LIFE IS A GIFT. Not Financial Advice. TABBOO LOVE: I Like BTC & XRP ---> Idea Below
COINBASE:BTCUSD
by MitchMilli