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Rsi_oversold

Lesson 1: RSI (Relative Strength Index) - Widely used indicatorWelcome to the first lesson from Lets Go Crypto! We aim to educate people who are struggling to understand indicators, and how to use them when it comes to trading. Hope this is helpful for all of you people out there, who are looking for some kind of lessons. If at the end, you do not understand or have any questions, feel free to ask in comments below. Today, we will be talking about RSI (Relative Strength Index), which is one of the most used indicators in crypto. There are many people out there who just use RSI to day trade, or even for a long term trading. Here you will learn what is RSI, the Pros and Cons of RSI, how to use it to trade, and the best strategy to follow if you are only using RSI as an indicator. I will be using 4H time frames as an example for the lesson. Lets dig straight into it. Default RSI indicator Settings: Length (14) . What is RSI? Relative Strength Index is one of the many oscillators out there, which basically calculates the strength and weakness of a coin. It compares the up movements versus the down movements over a given period of time. As you can see on the chart, RSI is plotted as a single line. That line when average gains are greater than the average losses, it moves up, and vice-versa when average losses are greater than average gains, the line declines. It is as simple as that. It basically takes into account, the speed and change of price movements. How do we use RSI? Using the average gains and losses that RSI calculates, a ratio is created, which makes the line move between 0% to 100% borders. Technically in the crypto world, we have our borders placed at 70% and 30% as you can see in the chart. (Some people also prefer using 80% when its bull market and 20% when its a bear market). If we see RSI nearing or crossing 70% line, that means that the coin is overbought. If we see RSI nearing or crossing below 30% line, the coin is in the oversold zone. When RSI is above 70, that means that a coins' price has been increasing for that period of time, and is not in the overbought zone, which means it could be due for a correction. When the indicator is below 30, it shows a strong run lower which might be losing momentum, and the price may be due for a rally upwards. This is not at all hard to understand. I hope everyone is on the same page so far. Make sure you understand this bit. RSI > Price increasing > If nearing 70 or above > Overbought > (We might see some downward movement) RSI > Price decreasing > If nearing 30 or below > Oversold > (Price might start going back up) Easy peasy! Its always easy until it comes to applying it to trading right? Lets have a look at that as well. I am sure after this and a little bit of practice you will be able to use this indicator with full confidence. Applying RSI in trading Just spend a minute looking at the chart for me really carefully and match the price action with the RSI movement. You will see that it is very similar. When the price is going up, RSI is going up, and when the price is going down, so is RSI. When to Buy? Scenario 1: So we know that when RSI is low (less than or equal to 30), it is oversold, and that usually means that the coin can rally up soon. Our aim should be buying in when RSI is low. So if it has crossed below 30%, wait to buy in until it comes above 30, that is just a confirmation that the trend is changing to bullish. It simple. Read this one more time. Scenario 2: There is one more situation when it is not necessary to wait for the RSI to go below 30, but be careful with this one. This is called a bullish divergence. It occurs when RSI makes a higher low while the price makes a lower low. The more times this occurs, the more bullish it is considered for a coin. I will be explaining Higher Lows, and Lower Lows for those who do not understand it. Since I am getting out of words here because of the limit, continue reading below..........
COINBASE:BTCUSDEducation
by MoneyChartz
11
Long on USDCADHi guys, i've written down the main reasons why i'm going long in this market. As you can see, we're sitting at a previous level of structure, and we've created an AB=CD pattern with Fib confluence right at that level, that comes at a round number (that could strengthen the support being). We're also in oversold conditions. All those reasons together make me think we could see a rally from this level, even though the trend still remain bearish. If you have any question/idea, feel free to comment below. Otherwise, see you in the next chart!
Long
by Roker1
3
Target reached. Where next?In 1hr: As expected RSI found support whilst the price continued down. THe price has found support. Will the RSI give support twice or will it break through next time? Will the price support hold? RSI and MACD trends are upward, but maybe too fast and resistance to be encountered In 4hr: RSI support not yet reached and not yet oversold (<30%). My thoughts on this so far have been proven conservative a couple of times and its looking that way again. Breaking through the long term price support however would have further consequences. 10440 is a re-entry position I like, but do not want to go in 100% until conformation is attained from the 4hr. Caveat : I am not a professional trader or adviser. Do your own research before making any trade. Never trade more than you can afford to loose.
BITFINEX:BTCUSD
by reppac
Will BTC retest the yearly 0.618 Fib level?Inverted head and shoulders pattern showing bullish bias and potential retest of 0.618 in next week Triple waves pattern also confirms a potential retest of 0.618 level in next week according to the angles and lengths of previous waves RSI levels are showing signs of overselling -> might indicate a reversal in short term as both 4h and weekly charts show this MACD levels are confirming the bearish trend with likely zero crossover to come Conclusion: we might see BTC 3.01% range 7500 - 9500 again in the next 1-2 weeks depending on which pattern dominates
BITSTAMP:BTCUSD
by TheIntern
ADA - OversoldCardano is just in a range of oversold that I'm guessing it might go up again. This scenario on the 4h Chart only occurred once in the past and then it rose +30%. Obviously it isn't guaranteed that the price will move upwards any time soon. Couldn't find any other bullish indicator at the moment. ( but looks like a good entry point or accumulating further ADA with caution ) !!!!!!!!!!!!!!!!!!!!! But I don't know what I'm talking about, just guessing here. !!!!!!!!!!!!!!!!!!!!!
Long
by Labrinth
Cardano (ADA) Long-term Analysis and Trade Set-up. Follow Along!I'm long-term bullish about BINANCE:ADABTC -- both the technology and the use case it looks to solve. We're clearly on a downtrend here, and the RSI deviation has been a good indicator of future price movements. We're highly oversold here, so I'm expecting a bounce back up in the near term. After that, we're seeing price separate from the long-term moving average, indicating a further dip in price. I'm waiting to sell some of my position after the price goes up to stabilize the RSI. Stay tuned for more info as we see how BINANCE:ADABTC holds up to COINBASE:BTCUSD . I'd like to hear your thoughts on BINANCE:ADABTC ! Please comment below, as the more input we see, the more informed we are! *** This is not a recommendation to buy or sell, this is for educational purposes only! ***
Short
by dsgorthy
Storj (STORJ) Technical Analysis and Trade Set-up. Tune In!Welcome to my TA on BINANCE:STORJBTC ! I've been long this coin November of last year, but this is my first public analysis on it. I'm long-term bullish about this asset, as it seems to solve an actual problem facing us in the future. Considering the rise of IOT devices, it makes sense that even storage should be distributed with the ability to charge very small amounts of money for services. BINANCE:STORJBTC has taken a beating since COINBASE:BTCUSD took down the whole market, but I'm seeing a slowing of a downtrend in, what I think, is a preparation for a rebound. This has been a common trend that I've seen in smaller-cap cryptos experiencing a downtrend. Here are the key characteristics that I've been seeing: Established downward-trending channel Pattern of touches on a parabolic line, showing a flattening towards the right Healthy swings in RSI, with oversold indicators towards this flattening region What I'm seeing here is strong evidence of a flattening region in preparation for a reversal. The coming days will show us which direction we're headed. If we do see a reversal, I'll post another trade idea with buy in, stop loss, and trading targets. I'd like to hear your thoughts on BINANCE:STORJBTC , especially if you're trading/looking to trade! Please comment below, as the more input we see, the more informed we are! *** This is not a recommendation to buy or sell, this is for educational purposes only! ***
Long
by dsgorthy
LBRY Credits (LBRY) Analysis and Trend Identification.I heard about BITTREX:LBCBTC back in early January and bought in right around the peak in January. I was riding the upward channel for a couple of days but failed to stick to my guns and decided to hold. Since then, I've seen a 50% retrace and am seeing a slowing of the downward trend. See my other analysis in the related link below on BINANCE:RLCBTC where we see similar signs and a near perfect bounce off of the parabolic upward-facing line. I'm not seeing BITTREX:LBCBTC level out quite as much, but the charts are surprisingly similar. We will likely continue in the downward channel for a bit longer. A move towards the upward edge of the channel will be a sign of a potential reversal. See the several spikes on the upward channel that I saw as a strong sign a month ago -- the RSI showed overbought and right after we saw a retrace. We've seen three oversold markers on this descent, and it seems like there will be a fourth touch coming up soon. The difference is, we're leveling out approaching the next touch. I'm looking for a touch within the purple circle and a retrace following the right side of the parabolic line. Significant volume on a reversal should signal the end of this downtrend and put us into another bullish trend, as COINBASE:BTCUSD leads the recovery of the entire market. If we see the price continue to drop with no dip below the RSI bound, this will confirm another continuation of the downward trend. I'd like to hear your thoughts on BITTREX:LBCBTC ! Please comment below, as the more input we see, the more informed we are! *** This is not a recommendation to buy or sell, this is for educational purposes only! ***
Long
by dsgorthy
Lisk (LSK) Technical Analysis and Potential Trade. Live Updates!I've been long BINANCE:LSKBTC for a while now, I think it's time I publish an analysis for those of you looking to get in to BINANCE:LSKBTC for the first time or for those of you that have been holding and are looking for targets. I personally like this coin because I am very bullish long-term on many platform plays including BINANCE:LSKBTC . With the rise in the number of IOT devices and the need for automating and reducing the fees on microtransactions, I think platforms that can scale with wide adoption will be one of the (if not the) highest cap coins down the road. Additionally, the market cap of BINANCE:LSKBTC is right around $1.5 billion, whereas BINANCE:ETHBTC is over $90 billion! To me, I see plenty of room for growth. The pattern that I have been most telling recently for BINANCE:LSKBTC has been the RSI, the volume, and the MACD. I see that BINANCE:LSKBTC is oversold and believe that it is ready for a rally! If we see similar action as in the last couple of overbought instances, we'll be headed towards the blow target. So, let's trade! Buy-in: 0.0023-0.0027 Stop-loss: 0.0017 (40% loss) Targets: (1) 0.0030663 (2) 0.0032747 (3) 0.0034432 (4) 0.0036116 (5) 0.0038514 (6) 0.0041569 (7) 0.0050390 (8) 0.0064664 (9) 0.0078938 (10) 0.0087759 (325% growth from upper buy-in) I'd like to hear your thoughts on BINANCE:LSKBTC ! Please comment below, as the more input we see, the more informed we are! *** This is not a recommendation to buy or sell, this is for educational purposes only! ***
Long
by dsgorthy
6
Monaco (MCO) Technical Analysis. Downtrend Coming to an End?Beautiful cards and a cheaper way of exchanging currencies, BINANCE:MCOBTC is a mid-cap coin attempting to change the way we think about commerce. I'm long-term bullish about this coin but am looking at some short-term TA to see if its time to get out and wait for a buy-in point or just stick with the coin that I have now. As with many of my TAs, I see a few positive indicators: Established downward-trending channel with several tests in the past few weeks Flattening parabolic line that indicates a potential reversal ahead Oversold RSI indicators showing in the middle of the channel instead of at the bottom It looks like the bears are getting tired of selling and are losing momentum. Now that we have the weak money out, I think it's time we see a BINANCE:MCOBTC rally! Note that we are still within our downward channel, but I do see evidence that suggests that we're about to exit our channel and flatten/reverse direction. I'd like to hear your thoughts on BINANCE:MCOBTC , especially if you're trading/looking to trade! Please comment below, as the more input we see, the more informed we are! *** This is not a recommendation to buy or sell, this is for educational purposes only! ***
MLong
by dsgorthy
3
MONABTCOn the 1-hour chart we can see that 5 Elliott impulse waves were followed by ABC correction waves pattern. After this Cup & Handle pattern is forming. Right now the price is above Ichimoku cloud moreover the green line is above the red line right in the place of handle formation. Moving averages and Stoch RSI indicates oversold zone. Combining with a strong support we will have completion of the formation and the growth to the targets according to the Fib retracement levels. Buy only when it goes above Fib 0.382
Long
by Skyrexio
$XRP/BTC - Why it's hard for coins like XRP to reach ATH againThe characteristics of a coin like XRP: Was insanely cheap Huge volume accumulation due to its low valuation Sudden insane increase in price valuation, with little reason for it (no working product, only promises) Bagholders created by buying much higher than its intrinsic value Overvaluation Consistently failing to have strong break outs after peak (except the one from the falling wedge), XRP is on a slow decline. It is possible that it will go even lower, despite what their Twitter may make one feel. $XRP is a unique coin compared to other coins like it: their core philosophy is to keep a stable price by dumping their own coins into the circulating supply to keep it stable. There is suspicions that their team dumps their own coins around conferences where the price should be going up. Even when $XRP partnered with a Japanese financial institution to be exclusively its only cryptocurrency, price saw a minor increase before dump. ripple.com Those who have bought it before mid-December 2017 are still doing fine, but considering the resistance it has trying to go up, I would look elsewhere for more likely profit.
by NeoButane
3