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Rsi_divergence

RSI Forex: A quick review of the market situationWhat is RSI: . RSI, or Relative Strength Index, is a momentum indicator that is used to measure the strength of a trend. RSI works by comparing the average profit and loss over a specific period. It is primarily used to identify moments of overvaluation or overestimation in the market, allowing investors to enter the market with a much greater chance of profit. RSI is expressed on a scale of 0 to 100, with a value above 70 usually indicating overvaluation and a value below 30 indicating overvaluation. However, there are many other ways to interpret RSI values. Use in practice: . Here are some ways to use RSI in forex trading: At the bottom of the chart: RSI indicator Red dotted line: Level 70 Green dashed line: Level 30 Blue solid line: RSI level Entry signal - The appearance of RSI values below 30 or above 70 can indicate the possibility of entering the market. When the RSI exceeds the 70 level, we expect prices to fall and can open a short position. Conversely, when the RSI falls below the 30 level, we expect prices to rise and can open a long position. . Divergence - In the case of divergence, which is the difference between the behavior of the price and the value of the RSI, we can look for signals that the trend may reverse. For example, if the price is rising and the RSI value is falling, this could indicate a possible trend reversal and a signal to open a short position. . Use of the neutral zone - Some traders use the RSI neutral zone (between 30 and 70) to identify the trend. If the RSI remains in the neutral zone for an extended period of time, it may indicate the absence of a trend. However, if the RSI leaves the neutral zone, it may indicate the emergence of a new trend and a signal to open a position. . In conclusion, RSI is a very popular and effective technical indicator that can be used in forex trading. However, like any other indicator, the RSI is not perfect and requires closer analysis in combination with other indicators. Our dedicated Manticore Investments strategy is based on a combination of 3 indicators, which together provide a very effective position entry signal. We use Haiken Ashi Candles, RSI and Bollinger Bands. In future materials we will show how to apply this combination in practice.
CRYPTOCAP:BTC.DEducation
by Manticore_Investments
Is CL Preparing For A Big Bounce?Technical Analysis: - Crude Oil(CL) is still doing a ((W)) ((X)) ((Y)) correction structure in Daily Chart - We present two possible Paths - For Path 1 in Black with 65% probability. We expect that the correction will be completed at around HKEX:53 -56 where the smart buyers can appear - For Path 2 in Blue with 35% probability, We expect that the correction will be completed at around HKEX:40 where the smart buyers must appear - In short term, It's doing wave ((X)) in black once it's done we can forecast the buy area more precisely - H1 right side is up - H4 right side is turning up - In orange decision area, the Path 1 will increase the odds if H4/Daily RSI divergence are erased - CL is still not preparing for a big bounce really Technical Information: - Don't sell CL in short term - As a swing trader, you must wait for the correction to be completed in wave II in red in order to buy at around HKEX:53 -56 in Path 1
NYMEX:CL1!
by Market-Right-Side
A Long Awaited LONG position on AUDCADACAD (Australian Dollar vs Canadian Dollar) broke past the support last week but quickly recovered this week which makes it seems like a false break. My Long entry was fueled by a Divergence on the RSI as well. Well, what do I loss just 15 pips thereabout and 1% of your trading account for the trade(that's if you wish to go for it). The RR on my end is about 1:6. This isn't a financial advise. I just love sharing my thought so I can develop my trading skill. Note, crosscheck with your strategy and not be swayed by my newbie-like strategy. What do I know. Kindly comments on areas I could better improve. Thanks Everyone
Long
by writershanon
$JD Potential IHS still intact Hey guys, after a big down day today, I wanted to take a look at the chart again. The inverse head and shoulders is still intact. I really want to see the RSI trendline keep that incline slope. If it doesn’t hold RSI tendline, we may head all the way to oversold conditions, which could be several dollars below here if we don’t get a significant rally. Also, It could potentially be a sign that the selling pressure is still present. Everything here is just an opinion, and made for entertainment purposes. This is in no way, shape or form any any type of financial advice or advice in general. This is for entertainment purposes only.
NASDAQ:JDLong
by Urmomma
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
BTCUSDT Igniting the final bearish leg of this cycleThe price action is telling me that the next macro swing-downward, probably the last leg-down of this cyclical bear market is igniting. Now, after a retrace of the "thrust-false break" to the weekly supply in an greedy extensive wave v, the shape of this retracement triangle is indicating a reliable reversal point. On the other hand, the bears are slowly taking control and the price will not return to the "upthrust". The minute pattern points to demand, which is a expected retrace for the main triangle. I'm considering this peak as a head of a potential head & shoulders formation on macro.
Short
by firmestudio
APE/USDT In The Process Of BreakoutHey traders 👋 Let's keep it simple here, RSI and BB indicators are showing a bullish sign to us which resulted a breakout of structure. We see a good potential to grow here! Waiting for good entry! If you like ideas provided by our team you can show us your support by liking and commenting. Yours Sincerely, Swallow Team 🔱 Disclamer: We are not financial advisors. The content that we share on this website are for educational purposes and are our own personal opinions.
Long
by SwallowAcademy
6
IOTX/USDT looking good for a potential short! Hey guys 👋 IOTX coin is going to be the first coin of the day. Where currently sitting just below that resistance we see a good potential for a short position here. BUckle up and let's go! If you like ideas provided by our team you can show us your support by liking and commenting. Yours Sincerely, Swallow Team 🔱 Disclamer: We are not financial advisors. The content that we share on this website are for educational purposes and are our own personal opinions.
Short
by SwallowAcademy
9
MATIC/USDT Possible To Go For A Re-Test Of EMAsHey guys 👋 MATIC/USDT is another one that caught our attention today. Currently on the edge of breakdown we see a good chance for this coin to show some bearish movement sooner this week. Buckle Up and let's go for a ride! If you like ideas provided by our team you can show us your support by liking and commenting. Yours Sincerely, Swallow Team 🔱 Disclamer: We are not financial advisors. The content that we share on this website are for educational purposes and are our own personal opinions.
MShort
by SwallowAcademy
10
FSLR - Rising channelOn the chart, we can see a rising channel occurring for FSLR. It has been ranging between the levels for almost 3 quarters. We expect that the price will stay in the channel for a while. You can buy at the lower boundary of the channel and exit at the resistance, which is the higher boundary of the channel. Invalidation of this thesis would be if the price closes out of the channel. Moreover, you can short at the resistance with a target at the lower boundary of the channel. Good luck!
NASDAQ:FSLR
by vf_investment
2