Get started

Relative

BTC Short Trade Opportunity and SetupBYBIT:BTCUSDT.P / BYBIT:BTCUSDT / CRYPTO:BTCUSD Bitcoin/BTCUSD has recently hit the resistance level of a pattern that has generally held true since mid March 24 (4 preceding resistance and support confirmations). Furthermore, it has started a return downward move following on from a 3 day filter for confirmation of the resistance level (an example of how a 3/5 day filter is an important tool for crypto trading). Additionally: The RSI resistance level of 70 has been recently reached and the RSI is trending downwards - a usually statistically significant indicator The downward return move is supported by reasonable (although not enough on it's own) volume A 3 bar pattern (downward move, pause, further downward move for confirmation) A rate of change approaching and trending negative A MACD also approaching negative It's always important to assess the risk that might prove the thesis wrong. And they are: Today's candlestick pattern is close to a dragonfly, i.e. there might be a return upwards move imminent (although this is unlikely to constitute a beginning of a move beyond the previous high as an actual dragonfly candlestick is at the end of a downtrend) The MACD is trending down but has not actually turned negative yet, i.e. it is a bit early to say this indicator is stating a downward trend The ROC hasn't turned negative yet either (but is trending downwards for sure) This all leads to the following conclusion: For those with a high enough risk appetite (and usually crypto traders are those with the highest :-)) this is a good entry point for a short trade. Using the (admittedly early but still reasonable) trend for the past three days to determine the final take profit point of 45500 (blue arrow) by approx. 19 Nov 24, the following can be set as a guide for a trade: Entry: Now or latest tomorrow in case today's candlestick is an indicator of a minor move upwards SL: $70,500 TP1: $63,450 - based on the first potential moving average being a resistance (200 MA) TP2: $60,500 - based on the previous move's consistent (and twice confirmed) low TP3: $54,500 -based on a previous historic low (i.e. psychologically important price point) which also acts as a confirmation of support to a previous move TP4: $45,500 - The approximate price point of an estimated downward trend Exit date (independent of TP level): 19 Nov 24 NOTE: the 19 Nov date here is important. It is the forecasted date by which the current downward price trend would linearly reach the support level. This date would be used as a checkpoint to exit the entire trade to safeguard against the normal, usually dramatic and beyond rational calculation price gyrations of crypto.
Short
by slip_stream
Natgas - Pending RSI Failure SwingThis is an idea of what to look out for if natgas continues to rally into overbought RSI territory and tops out as it did in May and June of 2024 (current year). Look out for overbought RSI divergence followed by a failure swing as shown and outlined in further detail in the idea linked below, probably confirmed by MACD divergence as well. Look out for an approximately 40-day duration of top formation once RSI enters overbought territory, plus or minus 20 days. Be prepared for a max draw down of 2.14% if you short the close of the day the failure swing is confirmed. The previous gain was 29.16%. Due to the high draw down %, it may make sense to short a QG micro which is 1/4 of an NG contract, possibly adding more on the way down at your discretion. The trade entry may happen later this year, approximately mid November. Also something to watch out for is a much sharper rise with a much shorter RSI failure swing pattern as was formed at the start of the year 2024 (current year), also shown on the chart. The drawdown was much smaller and the target much greater (50% gain) but the short duration made the failure swing more suspect. It’s better if more than just 5 days form the top and a deeper valley is formed. This is all very hypothetical, but these are the types of swing trades I watch for and it’s good for me, if no one else, to note these potential trades as they approach. Please feel free to ask questions. Previous failure swing idea with additional explanation:
PEPPERSTONE:NATGASShort
by Skipper86
Last Time This Happened, Bitcoin Rose Over 60%In a previous post about the weekly chart, I touched upon how we were headed toward 50 on the RSI. From there, it had the potential to range between 50 and 45 (within that yellow box), and it looks like we hit the 49 mark and then pivoted. The trend reversal happened once RSI was within fair-market value since it indicates over-bought and over-sold activity. The stochastic RSI bottomed and crossed upward, meaning we have momentum back in the market. The big question now is, how much will price action be impacted by an upward cross in RSI? We can see the possibility of the upward cross coming soon. This is definitely something we want to keep our eyes on in the coming weeks - especially since we are just coming out of a stochastic RSI bottom with momentum coming back into the market. For craps and giggles, the last time we had an upward cross in RSI on the weekly chart after bouncing back from around 51.75 (aka fair-market value), Bitcoin's price rose 61.5%, from $30,364 to $49,048 (at an RSI of around 86). I'm using that as the primary example as the last upward cross we had was from an RSI of around 80, however Bitcoin still went on a tear, rising almost 52% from $48,601 to $73,794 (where RSI peaked at 92). It was the tail end of October 2023 when Bitcoin's price took off once the RSI crossed around the 51.75 mark (aka fair-market value - see why this is important?), and peaked in March 2024, ultimately rising 143%. To say it may be an interesting couple of weeks to months with the potential price action is an understatement.
BITSTAMP:BTCUSD
by MicheLee
Does BTC go down even more? And what would that do with ALTSDid BTC make it bottom yet or will we see more red? If we look at the charts and the strong rejection of the current lows we would like to think we have seen the bottom. Relative Unrealized Profit That made me look into the RUP chart (Relative Unrealized Profit) on Chainexposed. If we analyse that chart we can see that the RUP in the green zone has been bottom signs. If we look in the red zon ther was always a top if we got there. The in the big circle we see a mirror image of 2022 vs 2024 and both can be seen as a H&S structure. Both have the same TT in the green zone. If we take this chart as leading sign we can sugest a uptrend from the current lows to form the right shoulder as drawn in the chart. The break of the shoulder and neckline would be the sign that we will go down towards the liquidity below the lows. Now this is nothing special in a regular bullmarket. But what if i was too tell you that the first real liquidity for BTC is as far down as 32k... Yes you did read it correctly. Almost all liquidity between the 56k and 42k where it was for a week or two ago is gone now. So in my opinion there ar two main scenarios possible here. Scenario 1: We will see new liquidity from retail investors building up just below the current lows and that will bring enough fuel for the bulls to proceed with the bull run and break the ATH. Scenario 2: Retail is so affraid (by FUD and the loses on alts) that they will not have the believe in the uptrend now. Then that would mean they are not likely to buy or go long now. Then the liquidity range below stays rather thin and there is lack of fuel for the bulls. Will that trigger a flash sale all the way down towards the 32k? What are your thoughts on these scenarios? Please let me know in the comments.
by RP_cryptotrader
Trading with RSI: The Bad, The Good and Even BetterIn this video I explain how to use RSI (Relative Strength Index) to make trading decisions. You'll learn how to properly use RSI oversold condition, combining low timeframe price action signals with high level context analysis. Besides of explaining three different strategies (the bad, the good and even better) I'll do back-testing on historical data to demonstrate how those strategies translate into real trading results. Disclaimer I don't give trading or investing advice, just sharing my thoughts.
AMEX:SPYEducation
by hermes_trisme
Trend Trading Strategy for the Heiken Ashi Algo v6Knowing when the RSI and price are in a ranging phase even in the short term can be a difficult process. You are either #Ranging #bullish or #bearish. At least in the Algo v6 you can get a clear vision of exactly whats happening. In this video im going to give you a VERY simple strategy on: 1. How to know if the RSI and price are ranging 2. When do i break away from Ranges 3. Am I trending 4. Im trending but whats my confluence to take a long or short 5. Is my range getting bigger or smaller Enjoy this quick vid and ask questions below. Thanks everyone.
Education
by CoffeeshopCrypto
4
Price overextension: misconceptions and common mistakesPrice overextension remains a widely misunderstood concept in trading, causing both novice and seasoned traders to make errors in their decision-making. This misinterpretation often leads to placing trades in the wrong direction or, equally detrimental, overlooking profitable opportunities. In essence, price overextension signifies that the market has undergone a rapid and excessive movement in one direction. Such movements are often perceived as unsustainable. Numerous indicators, such as Stochastic, RSI, Bollinger Bands and many other, attempt to identify such "abnormal" price movements so traders could capitalize on them. Despite variations in statistical methods and calculations, their common goal is to detect instances where price went or down too much and is likely to reverse. In this discussion, I will use Relative-Strength-Index (RSI), a popular indicator, to convey my perspective on price overextension. While some traders argue for customization, the elusive question of "how" often remains unanswered. From my experience, there are no universally perfect settings that consistently yield optimal results. I’ll draw my examples from the recent SPY bar chart (February 2024). The first misconception The first misconception is that if price is overextended it is time to immediately start looking for a trade in the opposite direction. The most important phrase here is “start looking”. Many beginners misinterpret this as an invitation to commence trading, leading to the premature initiation of short positions during perceived market "overextension" and vice versa. So, the first and foremost important advice is to never try guessing top/bottom based on one indicator or gut feeling. Simple as it seems I remember many times breaking this rule myself because the temptation was too strong. It rarely ended up well. On the graph, I've highlighted three recent instances where the RSI exceeded 70 (indicating overbought conditions). What stands out is that, following each occurrence, the price surged significantly before consolidation set in, inflicting losses upon short traders. Even experienced traders, who look for confluence of signals, may fall into this trap. In the first two examples, bearish candlestick patterns failed to prevent subsequent price increases. Most likely, those candles were “created” by weak hands traders, who tried to short market, while it was actually controlled by strong buyers. These instances could have been avoided by considering the daily graph, revealing a robust bullish context – price was in an uptrend, one-time-framing up on weekly. There were couple of moments when bears gained short term control (Tuesdays 13th and 20th) but they never could take the previous week low; bulls always confirmed their control. The second advice is to avoid trading against higher level context. While sometimes those trades might work the result is usually mediocre and most of the times you’ll simply lose. If you really wish to trade against context you need to construct a solid dossier of evidence, supporting your trade. The second misconception What is the second misconception? It is that when price overextended it is not time to go with the market. In this scenario, traders refrain from initiating long trades after RSI indicates overbought conditions, potentially causing them to miss profitable opportunities. It might not hurt your account but who likes missing good opportunities? Surprisingly, seizing these trades correctly is not much harder than any other trade. It simply requires prudence and discipline and getting rid-off cognitive biases. For example, in the second example on the graph a trader could win up to 1% if he played off gap-up open after seeing that the new price has found acceptance. Conclusion It is possible to build a profitable strategy that relies on “price overextension” concept. However, it demands more than a cursory examination of a single indicator and adherence to textbook candle patterns. Personally, I reached a point where I entirely abandoned the use of RSI and similar tools because, instead of providing clarity, they seemed to cloud my thinking. Opting for a more effective approach involves keenly observing actual market behavior, which often defies conventional expectations. Study of high-level contexts, understanding key levels, and discerning confluence in price action signals on lower timeframes consistently prove invaluable. This method helps steer clear of common pitfalls and contributes to enhancing overall trading results.
AMEX:SPYEducation
by hermes_trisme
Beating the S&P500 (SPX) Buy&Hold strategy by 16 timesS&P500 (SPX) strategy using Stochastic RSI Min-Max, normalized Volatility and Trailing Stop signals, beats the Buy&Hold strategy by 16 times Embarking on the quest to time the market accurately, the 'Holy Grail' of strategies, led me to create a script to approach this goal. Unlike other strategies that I tested, this one not only surpasses the long-term S&P500 Buy&Hold approach but does so by a remarkable 16.38 times! Initially, I employed an A.I. program based on an LSTM Neural Network using TensorFlow. Despite achieving a 55% next-day prediction accuracy for short/long positions, I sought improvement using a heuristic pine-scripting approach, incorporating stochastic RSI oscillators, moving averages, and volatility signals. With default parameters, this strategy, freely available as "XPloRR S&P500 Stock Market Crash Detection Strategy v2" delivered a staggering 2,663,001% profit since February 1871. In the same period, the Buy&Hold strategy "only" generated 162,599% profit. Picture this: a $1,000 investment in 1871 would now be worth $26,630,014 by February 2024. Check it out for yourself loading this strategy. The script operates as a Stochastic RSI Min-Max script, automatically generating buy and sell alerts on the S&P500 SPX. What sets it apart? The strategy detects "corrections," minimizes losses using Trailing Stop and Moving Average parameters, and strategically re-enters the market after detecting bottoms using tuned Stochastic RSI signals and normalized Volatility thresholds. Tailor its parameters to your preference, use it for strategic exits and entries, or stick to the Buy&Hold strategy and start new buy trades at regular intervals using buy signals only. In the pursuit of minimizing losses, the script has learned the effectiveness of a 9% trailing stop on trades. As you can clearly see on the upper graph (revolving around 100), the average overall green surfaces (profits) of all trades are much bigger than the average red surfaces (losses). This follows Warren Buffets first rule of trading to "Never lose money" and thus minimizing losses. Update: Advanced S&P500 Stochastic RSI Min-Max Buy/Sell Alert Generator I have also created an Alerter script based on the same engine as this script, which auto-generates buy and sell alert signals (via e-mail, in-app push-notifications, pop-ups etc.). The script is currently fine-tuned for the S&P500 SPX tracker, but parameters can be fine-tuned upon request for other trackers or stocks. If you are interested in this alerter-version script or fine-tuning other trackers, please drop me a message or mail xplorr at live dot com. How to use this Strategy? Select the SPX (S&P500) graph and set the value to "Day" values (top) and set "Auto Fit Data To Screen" (bottom-right). Select in the Indicators the "XPloRR S&P500 Stock Market Crash Detection Strategy v2" script and set "Auto Fit Data To Screen" (bottom-right) Look in the strategy tester overview to optimize the values "Percent Profitable" and "Net Profit" (using the strategy settings icon, you can increase/decrease the parameters). How to interpret the graphical information? In the SPX graph, you will see the Buy(Blue) and Sell(Purple) labels created by the strategy. The green/red graph below shows the accumulated profit/loss in % of to the initial buy value of the trade (it revolves around 100%, 110 means 10% profit, 95 means 5% loss) The small purple blocks indicate out-of-trade periods The green graph below the zero line is the stochastic RSI buy signal. You can set a threshold (green horizontal line). The vertical green lines show minima below that threshold and indicate possible buy signals. The blue graph above the zero line is the normalized volatility signal. You can set a threshold (blue horizontal line) affecting buy signals. The red graph above the zero line is the slower stochastic RSI sell signal. You can set a threshold (red horizontal line). The red areas indicate values above that threshold. However real exits are triggered if close values are crossing below the trailing stop value or optionally when the fast moving average crosses under the slow one. The red areas above the threshold are rather indicative to show that the SPX is expensive and not ideal to enter. Please note that in bullish periods the red line and areas can stay at a permanent high value, so it is not ideal to use as a strict sell signal. However, when it drops below zero and the green vertical lines appear, these are strong buy signals together with a high volatility. These Parameters can be changed Buy Stochastic Lookback Buy Stochastic Smoother Buy Threshold Buy Only After Fall Minimum % Fall Sell Stochastic Lookback Sell Stochastic Smoother Sell Threshold Sell Only With Profit Minimum % Profit Use Sell MA Fast MA Sell Slow MA Sell MA Sell Threshold Use Buy Volatility Volatility Smoother Volatility Threshold Use Trailing Stop Use ATR (iso of a fixed percentage for the trailing stop) ATR Lookback Trailing Stop Factor(or fixed percentage if "use ATR" is false) Trailing Stop Smoother Important : optimizing and using these parameters is no guarantee for future winning trades!
SP:SPXEducation
by XPl0RR
BTC : RSI Macro-TREND Market Hack 😎Hi Traders, Investors and Speculators of Charts📈📉 As I've said before, I love the logarithmic view of BTC. It gives a clearer indication of price increases alongside growth. Although inflation and value factors aren't physically calculated into the price, seeing the upwards curve makes more sense from a "holistic view" that would include things such as growth and inflation. A logarithmic chart view displays price changes as a percentage of the previous price. This means that equal vertical distances on the chart represent equal percentage changes, regardless of the absolute price level. This is in contrast to a regular chart view, which displays price changes on an arithmetic scale. This means that equal vertical distances on the chart represent equal absolute price changes. With help of technical indicator RSI, we can use the macro logarithmic together with the RSI as a sort of "roadmap" to identify the current dominant macro trend . If you found this content helpful, please remember to hit like and subscribe and never miss a moment in the markets. _______________________ 📢Follow us here on TradingView for daily updates📢 👍Hit like & Follow 👍 We thank you for your support ! CryptoCheck COINBASE:BTCUSD
COINBASE:BTCUSDLong
by CryptoCheck-
17
How RSI Alerts Can Supercharge Your Long-Term Crypto PortfolioBuilding a long-term portfolio demands a strategic approach that goes beyond random buys and impulsive decisions. Instead, savvy investors employ tools like the Relative Strength Index (RSI) to identify advantageous entry points and navigate the market cycles effectively. 💜 If you appreciate our guides, support us with boost button 💜 Here’s a step-by-step guide on how to harness RSI alerts to fortify your long-term crypto holdings. Step 1: Spotting Entry Opportunities with RSI < 35 When aiming for long-term crypto accumulation, the goal is to buy assets at opportune prices. Setting up your charts with the RSI indicator and adjusting the lower band to 35 enables you to pinpoint instances where cryptocurrencies in your portfolio might have experienced an unwarranted dip. This can be a golden opportunity to acquire assets for the long run, aligning with the principle of buying low. Step 2: Steering Clear of Overbought Zones with RSI > 70 Conversely, an RSI reading surpassing 70 signals potential overbought conditions. In such instances, it's prudent to exercise caution. Holding off on new purchases during these periods or even considering exiting certain positions that have seen significant price surges allows you to safeguard your returns. Converting gains into stablecoins during overbought phases enhances liquidity, positioning you strategically for future opportunities. Step 3: Confirm with Other Indicators & DYOR RSI functions most effectively when complemented by other indicators. Incorporating tools like Moving Averages, Bollinger Bands, and MACD provides a more comprehensive view of market conditions. Remember, thorough research is crucial. Rely on multiple indicators to reinforce your decision-making process and mitigate risks associated with single-point analyses. Step 4: Get Timely RSI Alerts On Your Email & TradingView App Time is of the essence in the volatile crypto market. Instead of constantly monitoring prices across various platforms, set up RSI alerts on TradingView to receive timely notifications. This ensures you don’t miss critical market movements and can respond promptly to favorable conditions or potential risks. How to Create RSI Alerts on TradingView Open TradingView: Log in to your TradingView account. Select the Chart: Open the chart of the cryptocurrency you're monitoring. Add RSI Indicator: Click on "Indicators" at the top, search for RSI "Relative Strength Index", and add it to your chart. Set RSI Levels: Adjust RSI levels by clicking on the RSI label on the chart, then edit the Upper and Lower Band levels to your preferred values (e.g., 35 for Lower Band, 70 for Upper Band). Create Alert: Click on the alarm bell icon at the top of the chart, then select "Add Alert." Choose the condition (crossing above/below RSI level), set the desired RSI level, and customize the notification settings. Save Alert: Confirm and save your alert. You’ll now receive notifications via email or within the TradingView platform when the specified RSI conditions are met. Effectively utilizing RSI alerts is a game-changer for long-term crypto investors. By intelligently identifying entry points, avoiding overbought conditions, confirming signals with other indicators, and staying informed with timely alerts, you position yourself for success in the dynamic world of cryptocurrencies. Enhance your portfolio strategy with RSI – a tool that brings precision and efficiency to your crypto investment journey.
Education
by Vestinda
5
Tips on Adjusting the RSI (Part 2) Although the standard setting for the RSI is 70 (overbought) and 30 (oversold), I prefer to adjust the levels to 80 and 20. The purpose of this is to identify the extremely overbought/oversold regions. In addition to adjusting the levels, I would pay attention to the chart when the RSI enters in the overbought/oversold region (but would hold back on entering a trade) I would only enter a trade when the RSI turns down/up from the overbought/oversold region. This would signal that the price is likely to fall/rise as the RSI reverses from the extremes and back within range.
Education
by JinDao_Tai
Learning to use the RSI (Part 1)The Relative Strength Index (RSI) is a popular momentum oscillator used in technical analysis to identify overbought or oversold conditions in the market. The RSI is measured on a scale from 0 to 100, RSI values above 70 are often considered overbought, suggesting that the price may be due for a reversal or pullback. RSI values below 30 are often considered oversold, indicating that the price may be due for a bounce or recovery. A common mistake most traders will make is to assume that once RSI signals an overbought/oversold condition, the price should drop/rise, hence leading to a sell/buy decision. In the 2 examples highlighted (solid blue lines), you will notice that although RSI signaled an overbought/oversold condition, the price continued to climb/drop despite being overbought/oversold. Remember: Prices can be overbought/oversold for an extended period of time When using any indicator, always remind yourself of what it is measuring and remember that it is just math (not magic). The indicator is supposed to help quantify and help you see things clearer on the chart (rather than numbers). Check out Part 2 for Tips on Adjusting the RSI
Education
by JinDao_Tai
SPX and NQ - are we there already?I am cautiously optimistic that the the correction that started since mid July could be finally over and we could begin to see more ups rather than downs going into the final 2 months of this year. SPX did come very close to its H&S target while NQ was 4% shy of its H&S "target" (close enough though!) before we had a bullish reversal this week. One could still argue that this could just yet another "sucker's rally" (aka bull trap) that we have seen numerous times in the past 3.5 months. However, there are a few factors that gave hope for medium term bullish bias this time: 1. A pretty bullish (large body with almost no wicks) weekly reversal candle, though still in the making for this week 2. Both SPX's and NDX's Weekly RSI could be breaking out of their downward trendline, which often could be an "early" signal of strength in the coming weeks. Non-technical aspects: 3. More earnings announced this week have been beating market expectations and their stocks are now bouncing off a lower base. 4. Fed announcing a pause in in interest rate hike yesterday. That said, we still need to see the indices breaking above their strong trendline resistences (shown in Red) for a confirmation that the "correction" could be over, plus there is always a chance that the trend going forward could remain sluggish despite no longer "bearish". Let's see! Disclaimer: This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie trailing stop loss and position sizing) is (probably the most) important! Take care and Good Luck!
NASDAQ:NDXLong
by Juliac
Super Swing Strategy - Bollinger Bands, RSI, and ADX Strategy"Super Swing Strategy" - Bollinger Bands, RSI, and ADX Strategy Indicators Used: - Bollinger Bands - Relative Strength Index (RSI) - Average Directional Index (ADX) Bollinger Bands for volatility, RSI for overbought and oversold conditions, and ADX for strength of the trend. How it Works: Add Bollinger Bands, a 14-period RSI, and a 14-period ADX to your chart. When the price touches the upper Bollinger Band, the RSI shows overbought conditions (above 70), and the ADX is above 20, it's a potential bearish signal. A bullish signal occurs when the price touches the lower Bollinger Band, the RSI shows oversold conditions (below 30), and the ADX is above 20. You can use additional indicators or price action analysis to confirm signals.
TVC:DXYEducation
by Bullwards
🟩 Smaller stocks are showing valueThe small caps are getting to levels when they show value based on earning yields nad based on relative strenghts. These are the levels we saw before when the Russell 1000 started outperform the Russell 2000. Hence this is showing a potential broadening of the rally and give confidence to traders to not stick to the Mega Caps (FAANGS). Rather, this is showing traders, that as long as stocks setup, you can stay synced with the theme. TVC:RUT and TVC:RUI
TVC:RUTLong
by TintinTrading
TSLA - turned the corner?TSLA had been on a wild ride down since peaking on 4th Nov 2021, with many strong bear rallies in between. It finally hit the bottom on 6th Jan this year and began a rather strong rally until early Feb where it started to churn violently for the next 2.5 months, shaking out any weak bulls. A sustainable rally emerged again from 27 Apr and more signs have been emerging that the longer term trend have changed to bullish (short term pullbacks not withstanding): 1. a close above the 200 day moving average on 31 May and continued to propel higher for more than a week now 2. a break above a longer-term neckline in the region of 200-215 this week and 3. RSI line on it's MONTHLY chart has crossed above the 14 SMA line (signifying the likely emergence of a longer-term bullish trend). However, TSLA has been traditionally a volatile stock, hence it is safer to wait some dips to go long. Any retracements in the near term should preferably not breach the neckline support (200 - 215), although it is not up to us to decide how far it would pull-back . Wait to see the stock finding possible support (after a retracement) to go long (with stop loss below the most recent pivot low). Disclaimer: Just my 2 cents and not a trade advice. I may have an opinion but I do not hope. Cut loss (sooner rather than later) and move on if wrong. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:TSLALong
by Juliac
NCR road to around 30The decline seen in the stock in April and early May was halted by the 30 level of the 14-day RSI (purple line) and better-than-expected news. Currently, it is on an upward trajectory, crossing the 50-day EMA (gray line) and retesting this level. This provides support for attempting to surpass the 200-day EMA (turquoise line) at around 25.5. The question is whether we can sustainably stay above it. In the first instance, the target price is $26, and if it successfully retests the 200-day moving average, it could strengthen up to $30 by the end of June. In the analysis, the yellow line represents the 20-day BB (Bollinger Bands).
NLong
by BostonTrendLab
Relative Strength Index/RSI Made SimpleThe RSI (Relative Strength Index) is like a tool that helps people who buy and sell stocks and other things to figure out how strong the price of something is. It works by looking at the prices of that thing over a certain period of time, like 14 days, and then putting those prices on a scale from 0 to 100. 🔸When the RSI is high, like over 70, it means the price has gone up a lot and might be too high. When the RSI is low, like under 30, it means the price has gone down a lot and might be too low. But just looking at the RSI by itself is not enough. While many traders do use the RSI to buy at the 30 level and sell above the 70 level, this is not the only way to use the indicator. (As shown below) 🔸The RSI should be used in conjunction with other technical indicators and fundamental analysis to make informed trading decisions. In fact, relying solely on these levels can lead to missed opportunities and suboptimal trading decisions. 🔸It's also worth noting that the RSI can be used to identify bullish and bearish trends. When the RSI is above 50, it is considered bullish, indicating that the market is trending upwards. When the RSI is below 50, it is considered bearish, indicating that the market is trending downwards. 🔸While the 70 and 30 levels are popular levels to buy and sell, traders can also use other points based on how price reacts at those levels. For example, if the RSI reaches 80, it may indicate an especially strong upward trend, while a drop to 20 may indicate an especially strong downward trend. Traders should use their own judgment and analysis to determine which levels are most appropriate for their trading strategy. You can also find that as the name suggest (Relative Strength) traders should look for levels in price action where there is a strong reaction and then check to see at what level on the RSI this occurred because it might happen again once we got to that RSI value. (As seen below ) So as you can see in the image above you do not need to wait for price to go to levels 80 or 20 in order to look for reactions you can look at how price has reacted at previous levels before and monitor those levels in the future. Finally lets talk about divergence. 🔸RSI divergence is a trading strategy that involves looking for differences between the movement of the price of an asset and the movement of the RSI indicator. When there is RSI divergence, it means that the price of an asset is moving in a different direction than the RSI indicator, which can signal a potential change in trend. There are two types of RSI divergence: bullish and bearish. Bullish divergence occurs when the price of an asset is making lower lows, but the RSI indicator is making higher lows. This can suggest that the price of the asset is oversold and may be due for a rebound. Conversely, bearish divergence occurs when the price of an asset is making higher highs, but the RSI indicator is making lower highs. This can suggest that the price of the asset is overbought and may be due for a correction. Traders can use RSI divergence to help them make trading decisions. For example, if they see bullish divergence, they may consider buying the asset, while if they see bearish divergence, they may consider selling the asset. However, traders should always use RSI divergence in conjunction with other technical indicators and fundamental analysis to make informed trading decisions. Example is shown below: 🔸Settings of the RSI: Traders can customize the settings of the RSI to suit their trading style and preferences. They can adjust the number of periods used in the calculation, which can range from as low as 2 to as high as 200 or more, depending on the timeframe being analyzed. In addition to the default settings, traders can also adjust the overbought and oversold levels of the RSI. By default, the RSI is considered overbought when it is above 70 and oversold when it is below 30. Traders can adjust these levels to suit their trading style and the specific asset being analyzed. Traders can also add other indicators on top of the RSI to help them analyze the market. For example, they may add a moving average to the RSI to help them identify trend direction and potential areas of support and resistance. ______________________________________________ Also keep in mind that the RSI can be used as a reversal tool and also a trend trading tool. For example, when the RSI reaches extreme levels of overbought or oversold, it can signal a potential reversal in the price trend. When the RSI reaches these levels, traders can look for other confirming indicators or price action to help them decide whether to enter a trade in the opposite direction. On the other hand, as a trend trading tool, traders can use the RSI to identify the strength of a trend and to help them decide when to enter or exit a trade. When the RSI is above 50, it can indicate a bullish trend, and when it is below 50, it can indicate a bearish trend. Traders can use the RSI to help them identify potential areas of support and resistance within the trend and to enter trades in the direction of the trend. It's important to note that traders should not rely solely on the RSI to make trading decisions. The RSI should be used in conjunction with other technical indicators, such as moving averages, and fundamental analysis to get a complete picture of the market. By using the RSI as both a reversal tool and a trend trading tool, traders can better identify potential trading opportunities and make more informed trading decisions.
Education
by ChristopherDownie
8
Watchlists of SPX Sector ComponentsUse RSC indicator to spot strong stocks in related sector. Useful watchlists of SPX sector components: AMEX:XRT : www.tradingview.com AMEX:XLY : www.tradingview.com AMEX:XLV : www.tradingview.com AMEX:XLU : www.tradingview.com AMEX:XLRE : www.tradingview.com AMEX:XLP : www.tradingview.com AMEX:XLK : www.tradingview.com AMEX:XLI : www.tradingview.com AMEX:XLF : www.tradingview.com AMEX:XLE : www.tradingview.com AMEX:XLC : www.tradingview.com AMEX:XLB : www.tradingview.com
NASDAQ:NVDA
by muyexi
LKQ - Hidden Divergence - BullishOn the chart of LKQ, we can see a forming ascending triangle and we can see hidden bullish divergence on daily timeframe. An ascending triangle is a bullish formation. The pattern gets validated when the price breaks out of the upside of the pattern. By using the Relative Strength Index we can hidden bullish divergence. A long position can be taken when the resistance of the triangle turns into a support. See all further details on the chart. Goodluck!
NASDAQ:LKQLong
by vf_investment
6