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Rsi_divergence

btc going to drop box 12.6k - 9kthe hidden bearish divergence is a signal that there will be a downtrend continuation. daily negative divergence is a confirmation that uptrend is finished. price dropping below the 200ma of weekly is a sign price is moving towards the downside. a close below 23.3k the daily 200ma will confirm price will drop toward the previous low of 15.5k. most likely this 15.5k low will not hold and we will create a new lower low. a new lower low in price and a higher and high in oscillators, be it monthly chart, weekly chart and daily chart. this will give us a signal the start of real bullrun.. key level to note 23,3k 15.5k, 12.6k and 8.9k
BITSTAMP:BTCUSDShort
by Bro-of-Ced-Rich
7
Bitcoin Bears In TroubleHello Traders, As you can see in the chart, at this moment we have Bitcoin facing local resistance, everybody is opening short positions here, so very likely to see a breakout. You can clearly see an RSI Bullish Divergence in the Chart, this is a very strong signal that usually tells the end of a trend. If we see a weekly close over 18000$ there is high probability for Bitcoin to reach Major Resistance that is the Neckline of the Double Top pattern printed in the All Time High 30000$. This level acts very often as a magnet and there is usually high probability for the price to reach it again. So if we see a weekly close over 18000$ Buy Setup with stop loss at 16800$ and with targets 21000$ 25000$ and 30000$. I you agree with me a boost is much appreciated and If you have questions or you want to share your feedback I will be glad to answer in the comments.
Long
by piccard54
4
HBAR Bottoming HereRSI trending up during the entire falling wedge, it bottomed as the wedge started, and then moved above 30 at its bottom. Wedge broke out, price fell back to weekly support near the same bottom. So, we have bullish divergence b/w RSI and price, a bullish falling wedge that broke out but hasn't risen yet. Price fell back to weekly support a second time, potential double-bottom. Finally, price is moving within its tightest range on the daily in its entire history. Could we see a final strong drop before it moves up? Yes, but it looks good and ready to at least make a move into the first area of resistance, and back into the 200s. I think a larger move is in store, however. Let's see. See my other post on HBAR/USD in the related ideas below. I think HBAR wants to move back into the middle of weekly resistance vs. USD (around 21-31 cents)
Long
by dudebruhwhoa
📊 3 Types Of DivergenceRSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and exaggerated divergences. 📍Regular Divergence: Regular divergence occurs when the price and the RSI indicator move in opposite directions. There are two types of regular divergences: bullish and bearish. 📍Hidden Divergence: Hidden divergence refers to a situation where the price and the RSI move in the same direction, but the RSI signals a potential trend continuation rather than a reversal. 📍Exaggerated Divergence: Exaggerated divergence is a type of divergence where the RSI signal extends beyond the typical overbought or oversold levels. It suggests that the price is showing extreme momentum and could potentially experience a significant reversal. In summary, regular, hidden, and exaggerated divergences in RSI analysis provide traders with valuable insights into potential trend reversals and continuations. By understanding these divergences, traders can make more informed decisions regarding their trading strategies and positions in the market. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
BTCUSD: Needs Breakout Before PumpToday's relief rally to $28,500 needs confirmation on both sides before we can see the broader picture. BTCUSD is currently making lower highs in a distinctive consolidation pattern, with tremendous support at $26,600 and multiple (failed) attempts to create higher highs. Here are some of my observations for both the bulls and the bears and I'll leave it for you guys to discuss in the comments. For the Bears: We need a lower high on the RSI before we can label this as a rejection off the red resistance line. A fall below $26,600 would make this rally a classic head and shoulders pattern, in which the price could potentially fall through the liquidity zone after its parabolic rise earlier this year. For the Bulls: The RSI has consistently been making higher lows since March 10th. This pattern is similar to the higher lows pattern that preceded January's liquidity pump after the FTX fallout, where BTCUSD rapidly rose up to meet the pre-fallout price levels. We would need a strong break through the red resistance line and a higher high to confirm that a macro rally has actually begun. My verdict: if a pump to $29,000 or $30,000 is coming, I don't think it is in today's rally. The RSI has risen too quickly when compared to previous macro rallies, and the red structural resistance hasn't been broken through. Rather, I believe today was an influx of capital because a) the opening on Hong Kong / China to crypto once again and b) the tentative debt ceiling agreement reached by the US Congress. Be sure to keep an eye on the red resistance line, and also the volume profile at about 29K. I will enter long or enter short depending on future price action and confirmation, but for now I am neutral.
INDEX:BTCUSD
by wbburgin
Mastering Oscillators In TradingOscillator indicators are technical analysis tools that show the rate at which a particular asset's price or other aspect is changing. Oscillators help traders identify potential trend reversals, trend continuations, and overbought or oversold conditions. These are general strategies that can apply to most oscillators. We would like to cover these in detail so you can ensure that you are using your oscillators to the fullest of their potential. There are literally thousands of oscillators to choose from on TradingView. All of them probably have a solid use case, but there are a handful of oscillators that have stood the test of time. Those titans of the oscillator category would include the Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Stochastic Oscillator. 1. Trading with Oscillators: Identifying Entry and Exit Points To use oscillators for trading, traders can look for signals to enter or exit trades. For example, a bullish signal could occur when the indicator crosses above its centerline, indicating that the trend is shifting from bearish to bullish. A bearish signal could occur when the indicator crosses below its centerline, indicating that the trend is shifting from bullish to bearish. Depending on if you are currently in a trade or considering a trade these bullish/bearish signals can be used as either an entry or exit signal. Traders can also use the momentum of oscillator indicators to identify overbought or oversold conditions. An asset is considered overbought when the oscillator is above a certain threshold, such as 70. Conversely, an asset is considered oversold when an oscillator is below a certain threshold, such as 30. Traders can use these thresholds to identify potential reversal points. Highly overbought can be power areas to look for entry or exit signals. 2. Oscillator Divergences: Confirming Trend Reversals and Continuations One of the most popular ways oscillators are used is by looking for divergences between the indicator and the price of the asset being analyzed. For example, a bullish divergence could occur when the price of an asset is making lower lows, but the oscillator is making higher lows. This could be an indication that the trend is about to reverse from bearish to bullish. Conversely, a bearish divergence could occur when the price of an asset is making higher highs, Oscillator is making lower highs. This could be an indication that the trend is about to reverse from bullish to bearish. 3. Using Oscillators in Combination with Other Technical Indicators While oscillators can be an incredibly powerful tool on their own, traders can also use them in combination with other technical indicators. For example, traders can use moving averages to confirm oscillator signals. If the oscillator generates a bullish signal and the price of the asset is above its 50-day moving average, it could be a strong indication that the trend is shifting from bearish to bullish. We see a similar use case in a bearish scenario to follow a trend! Traders can also use momentum in combination with other oscillators, such as the relative strength index (RSI) or the Stochastic RSI. These indicators provide additional confirmation of momentum signals and can help traders avoid false signals. This is actually one of our favorites as the Stochastic RSI is a measure of the momentum of the RSI. So their respective signals can complement very well. Putting It All Together Traders can put this knowledge forward to use most oscillators correctly to adjust their trading strategies and adapt to changing market conditions. We also recommend looking at information the creator of an oscillator has put out in regard to how to properly use the indicator. Traders can use these strategies to help modify or change their positions. For example, if the chosen oscillator used for an asset is weakening, it could be an indication that the trend is about to reverse. Traders can adjust their strategies accordingly by taking profit from their long positions or entering short positions. Similarly, if the chosen oscillator for an asset is strengthening, it could be an indication that the trend is about to continue. Traders can adjust their strategies accordingly by adding to their long and short positions or entering new long or short positions. In conclusion, oscillators are an extremely powerful technical analysis tool that can help traders identify potential trend reversals, trend continuations, and overbought or oversold conditions. By using oscillators in combination with other technical indicators and adjusting their trading strategies to adapt to changing market conditions, traders can improve their trading performance and achieve greater success in the markets.
Education
by LeafAlgo
2
XAU/USD Swing Trade PlanHello Guys. Hope you have good times and great trades too! Today i'm going to explain why GOLD will fall to at least 1930 in coming days. First of all as you can see in my chart we see a strong Bearish Divergence Between RSI and price in Daily TF , that i show them with white lines. Next , We can see a Evening Star Pattern in this strong Resistance level(2050 $). After that we pass through 20 and 50 MA 's and according to Pullback to MA50 , I personally predict we can continue downside. as you can see we have a trendline base don the pervious two bottoms. And this Trendline Overlap with MA100(Green line). So i think this is the first Target for the price in the way of going down. For later happenings we should follow chart and see what candles shape in this area. But Don't forget to SET a Good Stoploss in Lower timeframe , if you want to catch this Fish :) Hope you Enjoy my opinion and PLEASE Share me your idea in comments , Let me Learn something from you. THANKS all my friends. Good Luck.
FXOPEN:XAUUSDShort
by TraderAmin-KZ
6
$INSP near completing head & shoulder patternInspire Medical Systems develops innovative and minimally invasive solutions for patients with obstructive sleep apnea. Ranks #10 in the IBD Group Medical-Products Group with a Relative Strength IBD Rating of 93. This is a what leader looks like. Today is forming a daily shark patter with a pivot buy at $278.10. The follow through would be a breakout above $283, which would confirm the head & shhoulders pattern. I like these odds, I will buy those breakouts if volume is behind the moves. The RSI hasn't touch the oversold zone and has showed 3 bullish divergence within this long base. Let's waitn for the breakout!
NYSE:INSPLong
by dpuleo19
📈Ethereum fake bullish scenario📉BINANCE:ETHUSDT COINBASE:ETHUSD Hey everyone, first take a look at my previous analysis and positions. Along with the analysis of Bitcoin, Ethereum can also continue its upward trend up to the stop-hunt range if the price stays above the 1854 level. Consider the impact of the ADP Employment Change & ISM Services PMI & Fed Interest Rate Decision. 5.25% or even lower can pump Btc and Eth. Please share ideas and leave a comment,1 let me know what's your idea. CrazyS✌
Long
by CrazyS
2
$AMZN - Pennant PatternIn which direction do you guys think this pennant pattern is breaking out to? I'm seeing an RSI bullish divergence freshly created. But I'm also seeing imponent 10 and 50 EMAs right above the price right now. In short, the trend is our friend. That's the overriding principle. However, we also know that every trend eventually bends. In any case, the conclusion to be drawn is that all you have to do with this market is wait and see which direction it wants to take. For it is about to disclose that information. Finally, remember, that direction is meaningless for trading decisions in isolation. We need a target/take profit plan, a stop loss, position size, max ttl equity exposure ... a back tested trading system, confidence and mastery in the execution of such a system. Without these, you're trading blindly. Cheers, Tenacious Tribe - Backtested Trading Strategies & Studies 50% discount on all of our products, in our web, with the following code: MOX Q3C WXRX
NASDAQ:AMZN
by ruben_rodrigues
$F - Descending TriangleThe bears have been able to drive this market downwards at steadily lower up swings. And conversely, the bulls have not been able to drive this market past its previous swing highs since August 2022. Although this chart pattern and price action behavior is suggestive of bearish dominance in this market. Although the price is trading below the key EMAs. The longer time frames and the RSI bullish divergence formed from July to October 2022, does not allow us to jump into conclusions as to how to form our bias. More important perhaps than forming our bias here, is to register how neatly this pattern is being formed, from volatility to the lack of it. To the extent that the price is now trading in a very narrow range. To the extent that a breakout with conviction in either end of the triangle, now, will be a revealing signal of where this market wants to go. Despite the sensation of control that any sort of analysis might lend you, please note that the future is unknown. For this reason, risk management is the real name of the game here. Remember to keep your positions small and dispersed. Cheers, Tenacious Tribe - Backtested Trading Strategies & Studies 50% discount on all of our products, in our website, with the following code: MOX Q3C WXRX
NYSE:F
by ruben_rodrigues
PacWest - Bollinger Bands breakouton 5 min time frame, using indicator BB with RSI, entry taken as per Divergence, movement confirmation with Stoch RSI, Heikin-Ashi, Gap up opening confirmed reversal to the price calculated earlier on weekend for price to open @ $5.50 wherein pre market showed jump in price due to dividend cut decision by bank to -96%, total duration of trade is around 1 hr 30 min. Was able to achieve target defined with almost 14% gain. Closed the trade as per candle confirmation (hammer candle formed at the bottom - which gave upward confirmation to closed the trade.
PShort
by Ethical_Bear
KOTAKBANK BULLISH DIVERGENCE at the SUPPORT ZONE !!!Hello to everyone, Kotak Bank trading near weekly support zone & RSI Bullish Divergence also happening near support zone , which gives double confirmation that the price may go upside. So here perfect low risk and high reward setup. #KOTAK MAHINDRA BANK📈📉 👉🏻Stock approaching strong demand zone✅ 👉🏻 1690-50 Support👍 👉🏻Stock bouncing from support📈📈 👉🏻RSI Bullish Divergence On Weekly chart✅ 👉🏻TGT------ 1770/1808/1855+ 👉🏻Add To Your Watchlist✅✅
NSE:KOTAKBANKLong
by Jha_Nidhi
4
GBPJPY - Potential Reversal TradeHey Traders! Today we're taking a look at a bearish trading opportunity on the GBPJPY. At heart this trade is a structure-based reversal trade but as you'll see in the video, to find our entries we're actually taking a continuation trade type of approach. - More reasons to throw out the names "continuation" & "counter-trend" Anyway, I hope you guys enjoy & if you have any questions or comments please leave them below. Your Trading Coach - Akil
Short
by Akil_Stokes
2
Stochastic RSI in detail and how to use it.The Stoch RSI (Stochastic Relative Strength Index) is a technical analysis indicator used to identify overbought or oversold conditions in financial markets. It is a combination of two popular indicators: the Stochastic Oscillator and the Relative Strength Index (RSI). The Stoch RSI applies the Stochastic Oscillator formula to the RSI values, aiming to provide a more sensitive and faster signal for potential trend reversal. The Stoch RSI is calculated as follows: Choose the time period for which you want to calculate the Stoch RSI. The most common period is 14 . Calculate the RSI: (Detailed post on this in the link below) Determine the highest and lowest RSI values: Identify the highest and lowest RSI values over the same time period (e.g., 14 days). Calculate the Stoch RSI: Use the following formula to calculate the Stoch RSI: Stoch RSI = (Current RSI - Lowest RSI) / (Highest RSI - Lowest RSI) The resulting Stoch RSI value will range from 0 to 1 (or 0% to 100%). A value above 0.8 (or 80%) typically indicates an overbought condition, suggesting a potential price correction or reversal, while a value below 0.2 (or 20%) indicates an oversold condition, which may represent a buying opportunity. What does Stoch RSI tell us ? Stoch RSI is a measure of how fast the RSI is changing. As an analogy. Imagine you are driving your car and have foot on the accelerator which will cause increase in the speed of your cat at every moment, now the rate at which your car's speed increases is acceleration. The bigger the more powerful engine your car has the more acceleration you get and the faster you get to the top speed of your car. So, in this analogy speed of your car at any instant is RSI , acceleration is Stoch RSI and top speed of your car is overbought condition of an asset. RSI measures who is relatively more aggressive among buyers and sellers at a given instant. Stoch RSI measures how aggressive the buyers or sellers are at a given instant. So just like in a fight if someone is too aggressive, they are going to spend themselves too quickly and even though they want to fight more they won't be able to until they ease up and relax a bit, this is similar to Stoch RSI of an asset getting to overbought condition and then asset either retraces or takes a pause as buyers are exhausted and need to regain strength by taking profits which turns them into sellers and the asset starts moving in opposite direction. Why is 80 considered overbought? The number 80 is chosen based on empirical evidence, suggesting that when the Stoch RSI reaches these extreme values, there is a higher probability of a price reversal or correction. When the Stoch RSI is above 80, it indicates that the asset's price has risen significantly over a short period and could be overextended. In this situation, the asset may be overvalued, and traders may consider selling or taking profits as the price could reverse or correct. How to use Stoch RSI to enter a trade? How to enter a Long Trade: ======================= Step 1. Always use Stoch RSI along with RSI to make a decision: Step 2. Use it on mid to high term time frame (4h and higher). Step 3. Make sure both RSI and Stoch RSI are in oversold zone. Step 4. Make sure the asset is resting on a key support level and holding it. Step 5. Fearlessly enter the trade. How to enter a Short Trade: ======================= Step 1. Always use Stoch RSI along with RSI to make a decision: Step 2. Use it on mid to high term time frame (4h and higher). Step 3. Make sure both RSI and Stoch RSI are in overbought zone. Step 4. Make sure the asset is rejected from a key resistance level and is not able to breach it. Step 5. Fearlessly enter the trade. What happens if Support or Resistance is broken in Step 3 above: ======================================================= That's where divergences come into play. What is a divergence? =================== Divergence is a technical analysis concept that occurs when the price of an asset and RSI/Stoch RSI indicator move in opposite directions, indicating a potential trend reversal. There are two types of divergences: bullish divergence and bearish divergence. Bullish divergence occurs when the price of an asset makes a new low while the RSI/Stoch RSI indicator makes a higher low. Remember from explanation provided in sections above, this suggests that even though the price is going lower there are more buying activities than selling and the assets are becoming stronger, and a potential trend reversal may be imminent. Bearish divergence, on the other hand, occurs when the price of an asset makes a new high while the RSI/Stoch RSI indicator makes a lower high. I have highlighted bullish divergence in chart with purple line. Shown in Red line is bullish Divergence in Stoch RSI, when RSI is not fully oversold, this can happen when a new support is being formed on the chart due to changes in fundamentals of the underlying asset or some news events. Bullish and Bearish Divergences are even more powerful signals for taking trades, but we must make sure price is holding a support or rejecting from a resistance before taking the trades, otherwise divergences can easily disappear. Why do traders fail to effectively use RSI? The primary reason is lack of experience in trading. Which leads to impatient behavior. Not knowing how to mark key support/resistance levels. No risk management skills. (Taking too much risk) Lack of trust in self when taking trades, (Keep stopping losses too tight which knocks them out of the trades). I have shown several instances where RSI generated long signals and all of them were successful, the only reason a trader would not be able to use RSI effectively is because of the above reasons.
SP:SPXEducation
by zakoraio
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