Get started

Rsibreakout

📊 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
Inverse H & S on Weekly SPX Analysis We are nearing an important event tomorrow where we will come to know about Fed funds rates and FOMC guidance for upcoming months. These events are known for creating extreme volatility. We can easily swing up and down 100- 150 points on days like these and set in motion what's to come for the next few months. No matter how big of a volatile move we will see tomorrow in the price action, it will be a small blip on a larger timeframe and that's what we are here to analyze. On weekly Time frame I am looking at this inverse Head and Shoulders pattern. Let's analyze this structure based on RSI indicator. In the main chart we can see that, since the time inverse H & S began to form, the RSI has been trading in a Rising wedge formation which is a bearish pattern. Every time we touch the top edge of the wedge, we have been getting a rejection on RSI and big move down in SPX. In the begenning of the structure and RSI we got huge moves to the downside, but those moves have been getting smaller and smaller both in RSI and Price Action. This is called compression which is followed by explosive moves once the pattern is broken. Last week we again got a rejection from the top edge of the wedge and have begun to move down, I have placed the measurements on the chart about how much we have been dropping every time we touch top edge of the wedge on RSI and based on the patterns in price drop and how much time it took to drop to the lower edge. We can expect a drop of about 5+ % from the current top and reach there in the next 2 to 3 weeks. Now once we have reached there RSI will have to decide whether to bounce back up or finally break the pattern. The break to the downside has descent chances of happening as per the Rising wedge pattern rules where it says the pattern break occurs in last 33% of the structure and it looks like we should be there by end of this month. If it does break below the inverse H & S pattern will fail. The best way to protect you from entering wrong trades : is to never be too sure about any analysis and always consider all possibilities. Following are the possibilities I see with RSI which can make or break the structure: We must monitor all the trendlines in RSI and see what PA is doing, it may not go all the way down and bounce back up from one of the trendlines in the middle. The following are all scenarios I am watching for the movement of RSI. I used a simple but powerful RSI indicator to gain insight on SPX Price action. If you are not familiar with this indicator, or if you have basic understanding but want to fully understand this indicator in detail: You can ago through the post in the links below: I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned and if you like my content and would like to learn from my experience hit like and follow me for getting notified on my trade, market projections and several upcoming tutorials on technical analysis and several technical Indicators. You can also leave a comment and let me know if you want me to analyze any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it. Keep learning and Happy trading All.
OANDA:SPX500USD
by zakoraio
Awaiting doge breakout of channelDoge is in a declining parallel channel. Awaiting breakout of the channel, and clearing the moving averages will setup a long to 0.96, then 0.108 and 0.146 resistance levels. The rsi is also supportive of such a move with it currently trending upwards and not in an overbought position. The MACD is also beginning to trend upwards with the MACD line crossing over and signalling a upward trend. The rate of change ROC is also trending upwards but a note of caution: a pullback in the roc and then the breakout would result in a stronger indicator signal. Volume is also starting to trend upwards over the past week compared to the preceding period of 27 Feb to 08 Mar, this signalling a move is impending which will have market support (and is more likely to form a trend as opposed to just a temporary spoke or bull trap). İf taking a long position, depending on risk appetite, putting in a filter of 3 days from the breakout to avoid a bull trap might be advisable. Alternatively, rejection of the upper boundary of the channel and/or moving averages will setup a downward mice to 0.69 then 0.67 and then to the bottom of the channel. Best approach is to await a decisive action and enter then with SLs based on chart structure.
by slip_stream
PFC FRESH BREAKOUT !!!Hello to everyone The price consolidating in tringle from last 12 years and given fresh breakout towards the upside, also retested in lower timeframe. Chart looking strong in all time frames. Its good opportunity as an investment point of view. Expecting good upmove towards the upside. #PFC 👉PSU Stock on radar.✅ 👉12 years triangle consolidation.📈📉 👉Big upmove possible as investment 👉Support at 130 Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad.
NSE:PFCLong
by Jha_Nidhi
#BHARATFORG Bullish Momentum View!!!!!The Price perfectly respecting the change in polarity level. Weekly & Daily chart showing good momentum.Price breakout the resistance level and after breakout price persisting itself near CIP level & stucked itself in tight range and holds itself near higher levels.Expecting good breakout in coming days.Good opportunity to take long position after breakout of range. After breakout of level 920-- 925 we can see good price moment towards upside. **PRINCIPLE OF CIP** :- Principle of Change in Polarity. According to this principle, whenever support is broken, its role is reversed and it begins to act as new resistance. Similarly, when any resistance is broken, it changes its role and tends to act as the new support level for the price.
NSE:BHARATFORGLong
by Jha_Nidhi
3
Everything I've learned about the RSI BINANCE:BTCUSDT In this post, I'll make an attempt to share everything I've learned over the Relative Strength Index (RSI) Over the past 24 months. Nothing described in this post is financial advice, it's just me, sharing thoughts and ideas with you. nb: this post is more suited for traders and investors that are already educated about the RSI Indicators. A brief introduction about the indicator itself : The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate whether it's better to buy, sell, or wait. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The RSI is probably the most used oscillator in finance nowadays, by both retail traders and institutions, hence meaning that when used well , it can be used as a great edge to profitability. RSI popular uses : - An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. - The RSI can give us insights on a potential trend's loss of momentum or validity when the price pivots levels are diverging with the RSI indicator (hidden and regular divergences) - The most popular RSI length is 14 periods. My findings 1. Overbought and oversold: myth or reality? RSI's 30 and 70 levels never proved themselves to be a strong enough edge for me to be used as a standalone signal for trade entries. As an example, just look at the irregularity of the results you would get when using just these zones : My take on it is that as a price oscillator when it crosses into extremes, it simply means price momentum is at extreme levels. To me it's basically like a mountain cyclist in the middle of a race: he might very well go faster and higher, however, the quicker and higher he goes the more unlikely he is to keep up with that speed. Eventually, he might either decrease its speed or even go backward. What does this tell us ? The RSI 30 and 70 levels seem to be better used when used as timing indicators. For example, the 70 and 30 levels could be used as a filter for a trader to eliminate market noise when using a trend reversal strategy (mean-reversion). For trend traders, the levels could be used to timing signals where they'll start looking for price to do a pullback (consolidation) to get in the trend. My experience using the 30 and 70 levels as exit signals however has been better (when it comes to using it as the only signal for a trade exit). Say you are long on BTCUSD, in profit, and you get an RSI closure above 70. Well, in that case, you could exit 50% of your position and wait for the oscillator to cross down the 70 levels to exit the rest (as the overbought and oversold zones are rarely a defining factor for trend reversals and corrections). 2. Divergences in the overbought and oversold zones : The lower the time frame you are trading on is, the higher the noise when it comes to divergences, especially with volatile assets such as BTCUSD. So you might want to filter out most of the ones you see to only take the best ones. On the 15M and 5M timeframes, on BTCUSD, I find that on average about 1/3 of the divergences I see play out. However, we are not expected to take every divergence we see. Here's what has helped me get better results with divergences : - When approaching supply and demand zones, especially the higher timeframe ones, we might want to be more aggressive with the divergences we enter into. As the hit rate is not always amazing, the R:R is usually much better, and if the trade works out, it might give you great results which accounts for the low win rate. - If you want to increase your win rate, I also find that going for higher timeframes is usually better when it comes to divergences. - Take only divergences where RSI divergence's first pivot point is over 70 or under 30. Ideally, you don't want the noise to go below 60, or above 40, so that your trade has the necessary momentum to play out. - For extra confirmation, wait for a break of the noise level to enter the trade. - Regular and hidden divergences play hand in hand creating a form of momentum equilibrium. Hidden divergences always create regular divergences and vice versa. Hence a hidden divergence can be considered an early pullback warning to get in a bigger-picture trend. - Regular divergences tend to play out better than hidden divergences. This is especially true when the volume is decreasing, or after a longer period of consolidation when volatility has been contracting and might be about to expand soon. - Regular divergences in strong trends can be both a disaster and a treat. "The trend is your friend". This saying is especially true here. However, 2-3 drives of regular divergences are a great indication of a potential reversal, with enough confirmation factors to produce (often time) a great entry. - The angle of the trend line between divergences pivot points, both on the price chart and the RSI, can be a good indication of the severity of the divergence occurring. - The ideal lookback period for detecting divergences for me has proved to be between 5 and 28 bars. (Below 5 bars is not enough to confirm a true pivot point for me and above 28 bars has probably already played out in past price movements). - Like all edges, using a divergence strategy always produces better results when used in confluence with other signals. I find the best confluences happen when divergences occur: alongside a stochastic cross, near medium-slow moving averages, near horizontal supply and demand zones, alongside volatility expansion, when the volume is decreasing (meaning market makes are in disagreement with the move occurring), near Bollinger bands 2.5 to 3 standard deviations (period 20). - Convergence between your timeframes and higher timeframes is key to understanding how to better choose your trades. Try to play the big divergences but enter smaller timeframes divergences. - When you lose a divergence trade, don't get disappointed. Jump back in because often time, and price will need to do several divergences before getting in your desired direction (however, be careful not to jump in tilt mod. Know your win rate and R:R and keep your money management serious. You'll get blown out if you start tilting on this, especially if you trade reversals with divergences, as it's difficult to get the right timing every time). 3. RSI as a trend filter? - I've found that in trending markets, when RSI's Exponential Moving Average (EMA) crosses above the 50 line, it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - I've found that in trending markets when the RSI line crosses above the EMA (I use a 12 period), it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - As an indication of the trend's direction, I don't find any value in using bullish and bearish control zones. The only use I can find them is when using them for divergence levels filters. This is the end of the first post of this 2 parts series. There's just so much more you can discover about this indicator that it simply cannot be constricted to a few lines of writing. However, you are welcome to take a few of my findings and go test them out using replay and backtesting. See for yourself, and find your balance. Most of my learnings have been made through screentime, trial, and error, backtesting, mistakes, and research. Have a good day, Arthur Girard
Education
by arthurgirard15
ADANI ENTERPRISES LIMITED - Volume Breakout + Bullish on Chart📊 Script: ADANIENT (ADANI ENTERPRISES LIMITED) 📊 Nifty50 Stock: NO 📊 Sectoral Index: NIFTY 500 / NIFTY METAL / NIFTY NEXT 50 📊 Sector: Commodities Metals & Mining 📊 Industry: Metals & Minerals Trading Key highlights: 💡⚡ 📈 Script is trading at upper band of Bollinger Bands (BB) and giving breakout of it. 📈 MACD is giving crossover. 📈 Double Moving Averages giving crossover. 📈 Volume is increasing along with price which is volume breakout. 📈 Current RSI is around 67. 📈 One can go for Swing Trade. ⏱️ C.M.P 📑💰- 3575.70 🟢 Target 🎯🏆 - 3885 ⚠️ Stoploss ☠️🚫 - 3417 ⚠️ Important: Always maintain your Risk & Reward Ratio. ⚠️ Purely technical based pick. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat🔁 Happy learning with trading. Cheers!🥂
NSE:ADANIENTLong
by radha_23
3