Get started

Relative Strength Index (RSI)

BITCOIN IS OVERBOUGHT! RSI shows the price will go back downTo everyone that is overly exited with Bitcoin right now... Calm down! Yes Bitcoin has rallied quite a bit for the past day, but don't jump on it too quickly because it is extremely overbought. As shown on the RSI, the price is largely above the 70 mark, meaning that people are buying excessively and that the price will soon come back down. If you gained from the bullish movement, think about selling soon and buying again when the price will come back down because it certainly will according to the RSI.
BITSTAMP:BTCUSD
by YanakTrading
1
BNBUSDT Daily S/R| VAH, .618 Fib| Price Action Context Evening Traders Today’s analysis – BNBUSDT – trading at a key resistance level where a rejection is probable, Points to consider, - Price action SFP - Daily S/R Resistance - .618 Fib Confluence - Low Volume BNBUSDT’s immediate price action is corrective and is trading at a level of clear resistance, that is the daily level and the VAH, allowing for a bearish bias. The current volume is below average, indicating a rise fuelled by short squeeze; an influxes is needed to break this flow. Price action is to be used upon discretion/ management when executing this trade, invalidation is multiple candle closes above $2.88.20. Hope this analysis helps, Thank you for following my work And remember, “If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota
Short
by AzizKhanZamani
3
GRTUSDT Key High| .618 Fibonacci| Int-Daily S/R| Psfp Evening Traders, Today’s analysis – GRTUSDT – trading at an area of resistance where a high timeframe pivot is likely to occur, Points to consider, - Price action corrective - Key Psfp intact - .618 Fiboancci Confluence - Lower Monthly Objective GRTUSDT’s immediate price action is corrective and is trading towards an area that has multiuple technical confleunces, this allows for a bearish bias. The key Psfp level remains intact, suggesting liquidity resting, testing this rea will lead right into the .618 Fiboancci, there is where a rejection is plausible. It is important that one uses price action upon discretion/ management when executing this trade, invalidation is candle closes above the .618 Fibonacci. Hope this analysis helps, Thank you for following my work And remember, “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street.” – Jesse
Short
by AzizKhanZamani
5
AVAXUSDT PullBack Continuation| Daily S/R| Price Action| Trend Evening Traders, Today’s analysis – AVAXUSDT – trading in an up-trend, a pull back needs to hold to confirm a bullish retest, Points to consider - Daily S/R Support - .618 Fiboancci Confleunce - VAL Support - Order Block Support AVAXUSDT’s immediate price action is trading in an uptrend towards higher resistance, a pull back into support confluence area will allow for a bullish bias. The immediate objective will be the overall Daily Range high where a rejection is probable for a larger trading range. Price action is to be used upon discretion/ management, invalidation is multiple candle closes below the trading range. Hope this analysis helps, Thank you for following my work And remember, “Fear, inherently, is not meant to limit you. Fear is the brain’s way of saying that there is something important for you to overcome.” ― Yvan Byeajee,
Long
by AzizKhanZamani
1
ETHUSDT - RSI Shows More Upside 📈Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩(will be moving to corporate some time in Jan 2023)🏫 By using technical indicator RSI, we can see Ethereum has potential to see another push upwards. However, there is a formidable resistance zone and the candle would have to CLOSE ABOVE the resistance trendline in order to consider a reversal. A wick will just be stop hunting, therefore a candle close on a higher timeframe will be the most reliable indication. From a candlestick analysis, three white soldiers have formed but again, the diagonal resistance zone will have to be broken in order to continue upwards. Interested in my view on BTC using RSI ? Check out this idea: _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Long
by CryptoCheck-
31
SUSHIUSDT Daily S/R| .618 Fibonacci| Price Action| Trend Evening Traders, ' Today’s analysis – SUSHIUSDT- trading towards a key resistance zone where a rejection is possible Points to consider, - Price Action Corrective - Daily S/R Resistance - .618 Fibaoncci Resistance - Previous Consolidation Zone SUSHIUSDT’s immediate price action is trading towards a key resistance zone that is in confluence with the .618 Fibaoncci and two Daily S/R levels, this allows for a bearish bias. A change in market structure will be needs to confirm a trend reversals, this needs to occur at the previous consolidation zone. The immediate objective of this trade is the lower Weekly S/R It is important that one uses price action upon discretion/ management of this trade, invalidation is multiple candle closes above the last Daily S/R resistance. Thank you for following my work And remember, “Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager
Short
by AzizKhanZamani
1
#OP : A +120% Profits Opportunity in the Mid Term.#OP is looking in a bullish move in every sentiment flowing with the favor of the bulls currently. I will be back for more detailed info on the overall project but for now just want you to see the possibility of a long position at around $1.03. Mid term target will be at least at around $2.2 -SMA 20 needs to flip above the longer timeframe SMA's. -MACD looking bullish. -RSI looking bullish. -Even though a little bit more energy on volume is needed it looks great on the 4H and 1D chart. - Both symmetric and fallng wedge triangles do already formed by which the falling wedge break is the more bullish lookout in current circumstances. DYOR before making any investments on any asset and this is not a financial advice and do your own research before reaching out for your pockets to invest. CTE
Long
by cryptotalk_et
9
Long Idea As we can see here HST has been moving in a huge symmetrical triangle as we can see here the stock consolidates for about 2 weeks and a half once touching down at support before breaking out to the upside to once again touch the resistance. Things to NOTE: 1. Bullish Divergence on the RSI 2. Inverse H & S @HERE 3.Bullish PIN BAR on the WEEKLY time frame These are very strong indicators that HST may see a move up on the upcoming weeks. Play it as you will, I'd love to hear your input on this or exchange ideas on other possible stock moves. Happy trading fellas :" }
NASDAQ:HSTLong
by eguerrero589
GALAUSD Weekly S/R| Price Action| POC| Impulse Evening Traders, Today’s analysis – GALAUSD- trading at a key resistance zone where a rejection is probable, Points to consider, - Price action impulsive - POC S/R Resistance - Climatic Node - Daily S/R Support GALAUSD’s immediate price action is testing a resistance zone that is in confluence with the POC and a Weekly S/R, allowing for a bearish bias. The current volume node is climatic; this is evident of temporary top if bull volume does not persist. The immediate objective is the lower order block support, price has technical merit to retest the region. Price action is to be used upon discretion/ management when executing this trade, invalidation is multiple candle closes above the POC. Hope this analysis helps, Thank you for following my work And remember, “It is always the best discretion to let the market show us where it is going and just simply follow (this would be prudent), rather than predict where the market is going and place a position (this would be gambling).” -Anne-Marie Baiynd’
Short
by AzizKhanZamani
4
BTC Bottom Finder with RSI 📉Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 I'll be exploring a few scenarios for a potential Bitcoin bottom. In today's analysis, I make a use of Technical Indicator the RSI (relative strength index) over a long period of time, in other words a macro view. For more data that goes back further, I'm using BTCUSD instead of BTCUSDT. The RSI is trading in the historic oversold zone, but as we can see during the bottom of end 2014- beginning 2015, another leg down into the oversold zone is possible before continuing back upwards. This is indeed the scenario that I would be expecting, considering we have already tested this zone once but with talks of a global recession in 2023, we could see another leg down to support zone $11K before the final accumulation phase ends. I am by NO MEANS predicting the bottom date; just a simple overview that BTC is generally accumulated at a good price around this zone. Keep your eye on these 4 altcoins that have great upside potential during 2023, possibly even during a bear market as they are prone to pump and dump untimely 👀 XLM and DOT XRP and LTC _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
BITSTAMP:BTCUSD
by CryptoCheck-
32
APT|USDT DAILYS/R | TRADING CHANNEL| PRICE ACTION| TREND Evening Traders Todays analysis, APTUSDT, rejection from a clear resistance and channel high where a rotation lower is now possible, points to consider - price action impulsive - Daily S/R Resistance - Channel Low Support - Technical Higher Low APTUSDT has confirmed a rejection from its Daily S/R Resistance and is now trading towards its channel low support that is in confluence with the .618 fiboancci, allowing for a bullish bias. The immediate objective is the Daily S/R, exceeding this level will lead to a trend change and continuation. price action is to be used upon discretion/ management when taking this trade, invalidation is multiple candle closes below the channel low support. hope this analysis helps, thank you for following my work “The expectation that you bring with you in trading is often the greatest obstacle you will encounter.” ― Yvan Byeajee,
Long
by AzizKhanZamani
1
Bubble or NothingThe past two weeks have been largely uneventful as the market has seen a sustained period of low volatility and Bitcoin has been trading between the $16,250 support and the $17,000 resistance. From a technical perspective, the MACD indicator just crossed above its signal line. The last time this happened, the market saw a short-term increase in bullish momentum. Bulls will be hoping this momentum can play out and bitcoin can finally break above the $17,000 level and reach new range highs. Bears will be looking for a break below $16,250 which would only leave $15,500 as the last major support before $14,000. The RSI has still remained relatively neutral and has not provided any major support for either potential scenario as of yet. There has been an ongoing conversation as to whether the market will see an ‘echo bubble’ (a post-bubble rally that results in another, smaller bubble) in 2023. The spread between market expectations for a Fed pivot in H2 2023 could build expectations which might give confidence to the bulls. This is supported by the Federal Reserve recently starting to temper rate hikes from 75bps increases to a 50bps hike. However, there is evidence that markets tend to bottom after the Fed makes its pivot, not before. This would strengthen the case that we have not yet reached the lows of this current bear market. Another major event giving traders food for thought is China’s opening up from COVID restrictions. Will this prove inflationary for the world economy and potentially undermine the effect of rate hikes as Chinese citizens rush to spend money after 2 years of lockdowns? The impact of these events is worth following closely. Whether the market sees an echo bubble or not, one event that will have a major bearing on short-term market direction is the January 18th announcement on CPI inflation. Many traders will be looking for inflation to come in soft as this will grant risk assets, such as bitcoin, some relief whilst simultaneously causing the dollar and bond yields to fall. Regardless of what inflation comes in at, traders will want to exercise caution in leveraged positions at this time as volatility will most certainly be high around the announcement.
by Coinrule
1
GBPUSD VAH| .618 Fibonacci| Daily S/R Levels| Trend Evening Traders, Today’s analysis – GBPUSD- trading around range higher where a rejection towards the lows is probable, Points to consider, - Price action corrective - Range High Resistance - .618 Fiboancci Confluence - Daily S/R Objective GBPUSD’s immediate Price Action is approaching an area of resistance that is in confluence with the .618 Fibonacci and a Single Print Fill. Backtesting and rejection the level will confirm a Bearish Retest, this will increase the probability of Price Action rotating towards the lower Daily Support. Invalidation of this idea is multiple candle closes above the Range High resistance, Price Action is to be used upon discretion/ management. Hope this analysis helps! And remember, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you‘re wrong.” -George Soros
Short
by AzizKhanZamani
1
FTM Daily S/R| PSFP| VAL| Falling WedgeEvening Traders, Today's analysis, FTMUSDT, trading towards an area of support that has significant confluence - Daily S/R Support - PSFP Region - VAL of local Range - Bullish Falling Wedge FTMUSDT's immidiate price action is corrective, it is trading towards an area of HTF support and liquidity. Changing market strucuture at such region of support will place great emphasis on the current Falling Wedge pattern Price action is to be used upon discretion/management of the trade
Long
by AzizKhanZamani
Heiken Ashi Algo and the Mass Effect Moving Average: Almost HereWell ladies and gentlemen I think I have created a monster and I'm really happy to call it the heiken Ashi algo and the Mass Effect moving average combination. Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you. So what is the heiken Ashi algo oscillator? it is an oscillator much like the original heikin-ashi RSI with a ton more features. As you know a little while ago I came out with the CoffeeShop Crypto HARSI, Update to the original HARSI. And as development on that oscillator continued I had to change the name to the algo because now the oscillator actually speaks to you while trading is taking place. But as you know you should never use a single indicator by itself to enter and exit trades and understand what's happening on your chart. you should always use something as a secondary Confluence or even a tertiary confluence. Because the more confluences you have the better right? So with that I continued development on the Mass Effect moving average and you can use them beautifully in combination. In this video I don't want to get into the technical Aspect of all the details on how the oscillator and the moving average work but I do want to show you the parts that have been developed and what they mean. feel free to leave your suggestions below and I will make adjustments if needed. I'm probably going to need one more week before fully releasing both of these together and until then I'd love to communicate with you on anything to make it more fluid. With that let's take a look at my chart and see the breakdown. The Heiken Ashi Algo Double Stochastic - Uses a mean regression calculation for pullback notifications but it also adds support to knowing when a trend is in full swing. This happens when you see both stochastic ribbons touch each other while they are the same color Green touching green is a move to the upside. It matters most When it's above or below the 50 level. the other thing you can see here is when they touch and when they touch again as the same color is a clear sign of a Divergence. IBXL - Inside Bar Calculation. This will be moved to the Mass Effect MA as well Resistance / Support / are dynamic levels which change over time Bull Key level - Are Significant price or Price action levels which almost never change over longer periods of time. when I get a key level alert I Market on my chart with a thick line and I lock it in place. These are the major areas of supply and demand Zone on your chart and you want to watch them closely when price gets near these levels Pull Back - Helps you draw out targets to your trend lines. Now let's talk real quick about the mass effect moving average and what it will include. this uses a mean regression strategy so that you can swing trade- And get your confluences of when prices going to move up or down so doesn't matter if you are in an uptrend or a downtrend . Stop lost Trend color - Is this really a stop loss line which will follow your price action and depending on its color will tell you if you should be using a stop loss of a guy or a stop loss of a sell. Obviously if it's red you should be selling and if it's green you should be buying. do not use it incorrectly. Just because it changes to Green doesn't mean you by and just because it changes to Red doesn't mean you cell. It only means you are in an area where you should be buying or selling. The EMA's - it includes four different exponential moving averages which you can set appropriately to your style. The VWAP - Included in this is a VWAP Moving average. Even though the VWAP is used as a moving average against the RSI in the oscillator below, I included the VWAP in the Mass Effect moving average because once you switch to a daily chart The VWAP in the oscillator disappears but you can still have it on your chart in the Mass Effect moving average. So switching to a daily chart you will still be able to see your VWAP. The V-CROSS - This indication shows up so that you can see when the V WAP is crossing over your price level. This helps you know from point to point if you are above or below a support or resistance level and where is your price in relation to your VWAP. This will also help you notice when price is overbought or oversold. Fractals - Show you pivot points in market structure. I use them to find exit points for trades when there is no immediate swing low or high to be seen. Usually i look further left and use one of these points to exit. But they have even more application which I'll get into in another video. The Trend Ribbon - Is a bullish and or bearish colored ribbon to show you the trend that works in Confluence with your stop loss line which also changes from red to Green. when they are both the same color you are in a trend in that direction of up or down. The good thing about the trend ribbon is it's always seeking the same level as the VWAP and when it finally catches up to it that's when the trend usually goes flat and then reverses.
Education
by CoffeeshopCrypto
29
Relative Strength IndexThe Relative Strength Index is one of the most widely used tools in traders handset. The RSI is an oscillating indicator which shows when an asset might be overbought or oversold by comparing the magnitude of the assets recent gains to its recent losses. A common misconception is that the RSI draws a comparison between one security and another, but what it actually does is to measure the assets strength relative to its own price history, not that of the market. The Relative Strength Index is useful for generating signals to time entry and exit points by determining when a trend might be coming to an end or a new trend may be forming. It weighs the prices upward versus downward momentum over a certain period of time, most often 14 periods, thus showing if the asset has moved unsustainably high or low. The RSI is visualized with a single line and is bound in a range between 1 and 100, with the level of 50 being considered as a key point distinguishing an uptrend from a downtrend. You can see how the RSI is plotted on a chart on the following screenshot. J. Welles Wilder, the inventor of the Relative Strength Index, has determined also two other fundamental points of interest. He considered that an RSI above 70 indicates that the asset is overbought, while an RSI below 30 suggests an oversold situation. These levels however are not strictly set and can be manually switched, according to each traders unique trading system. Trading platforms allow you to choose any other value as overbought/oversold boundary apart from the conventional levels. How is RSI calculated? The formula is as follows: RSI = 100 – Where the RS (Relative Strength) is the division between the upward movement and the downward movement, which means that: RS = UPS / DOWNS UPS = (Sum of gains over N periods) / N DOWNS = (Sum of losses over N periods) / N As for the period used for tracking back data, Wilders original calculations included a 14-day period, which continues to be used most often even today. It however can also be a subject to change, according to each traders unique preferences. After the estimation of the first period (in our case the default 14 days), further calculations must be made in order to determine the RSI after a new closing price has occurred. This includes one of two possible averaging methods – Wilders initial and still most commonly used exponential averaging method, or a simple averaging method. We will stick to the most popular approach and use exponential smoothing. The UPS and DOWNS for a 14-day period will then look like this: UPSday n = / 14 DOWNSday n = / 14 What does the RSI tell us? here are several signals that the Relative Strength Indexs movement generates. As we said earlier, this indicator is used to determine what kind of trend we have and when it might come to an end. If the RSI moves above 50, it indicates that more market players are buying the asset than selling, thus pushing the price up. When movement crosses below 50, it suggests the opposite – more traders are selling rather than buying and the price decreases. You can see an example of an uptrend below where the RSI remains above 50 for almost the duration of the move. However, do keep in mind to use the RSI as a trend-confirmation tool, rather than just determining the trend direction all by itself. If your analysis is showing that a new trend is forming, you should check the RSI to receive additional confidence in the current market movement – if RSI is rising above 50, then you have a confirmation at hand. Logically, a downtrend has the opposite properties. Overbought and oversold levels Although trend confirmation is an important feature, the most closely watched moment is when the RSI reaches the overbought and oversold levels. They show whether a price movement has been overdone or it is sustainable, thus, indicating if a price reversal is likely or if the market should at least turn sideways and see some correction. The overbought condition suggests a high probability that there are insufficient buyers on the market to push the asset further up, thus leading to a stall in price movement. The reverse, oversold, level indicates that there are not enough sellers left on the market to further push prices lower. This means that when the RSI hits the overbought area (in our case 70 and above), it is very likely that price movement will decelerate and, maybe, reverse downward. Such a situation is pictured on the screenshot below. You can see two rebounds from the overbought level with the first move being extraordinary strong and bound to end with a price reversal, or a correction at least. . Having noted that prices tend to rebound from overbought/oversold levels, we can therefore reach the conclusion that they tend to act as support/resistance zones. This means that we can use those levels to generate entry and exit points for our trading session. As soon as the price hits one of the two extremes, we can use the Relative Strength Index to confirm a probable price reversal and enter an opposite position, hoping that prices will reverse in our favor. We can then set the opposite extreme level as a profit target.
Editors' picks
Education
by FOREXN1
27