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Rsidivergence

NIFTY50 || RSI positive divergence As mention in my previous idea, the recent rally was indeed a 'Dead Cat Bounce' as NIFTY50 has experienced another significant drop. However, examining the charts above reveals positive RSI divergence in both the 2-hour timeframe (TF) and the daily timeframe (DTF), with NIFTY reversing from a marked support zone. For the next bull run to be confirmed, NIFTY should hold above today’s low and meet the following two criteria: 1. The index begins trading above the 20 EMA band. 2. The RSI surpasses the 70 mark. This setup could indicate a more sustainable upward trend if both conditions are fulfilled. Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. Trading involves significant risk, and it’s essential to perform your own research or consult a financial advisor before making any investment decisions. Essential principles for traders: 1. Be Disciplined, Avoid FOMO: Maintain a disciplined approach to avoid impulsive decisions based on the "fear of missing out" (FOMO), which can lead to risky trades. 2. Risk and Reward Management: Always assess potential rewards relative to risks before entering a trade. Proper risk management ensures long-term success by limiting losses on any single trade. 3. Follow Stop Losses: Calculate and set a stop loss for every trade to protect against significant losses. Make it a habit to adhere to it without exception, even if the market seems to be in your favor. 4. Journal Your Trades: Maintain a trading journal to track decisions, wins, and losses. Analyzing past trades can help improve future strategies and identify patterns in behavior or biases. 5. Master One Strategy Before Expanding: It’s beneficial to focus on mastering a single trading strategy before exploring others. Once consistent, you can broaden your approach to diversify risk and opportunities. 6. Control Emotions: Emotions, especially greed and fear, can cloud judgment. Cultivating a mindset that balances confidence and caution is key to maintaining objectivity.
NSE:NIFTY
by Abdul-Rahim
MAZDOCK Breaks Downtrend Channel After Securing Major OrderMazagon Dock Shipbuilders Ltd (NSE: MAZDOCK) has shown a strong price action today, breaking out of the downward trend channel after securing a significant order worth ₹1.22 billion from Maharashtra State Power Generation. This news has spurred bullish sentiment, driving the stock up by +4.55% to ₹4,472.40. Technical Insights: Downtrend Channel Breakout: The stock has successfully broken out of the descending channel that has been intact since early July, signaling a potential reversal of the downtrend. Key Support Levels: The stock bounced from a strong support level at ₹4,248.30, which held firm despite recent downward pressure. Resistance Levels : Immediate resistance lies at ₹4,714.40, where the stock previously faced selling pressure in late September. A breakout above this level could push the stock towards ₹5,147.20 and then ₹5,555.05. Volume and Momentum: The recent price surge is accompanied by increased volume, suggesting that the bullish move is supported by strong buying interest. RSI is moving upward, currently near 60, indicating room for further upward movement before overbought levels are reached. Fundamental Catalysts : The order from Maharashtra State Power Generation strengthens Mazagon Dock’s business outlook, providing long-term revenue visibility and boosting investor confidence. Outlook: If the stock manages to sustain above ₹4,248.30, it could see further upside in the short-to-medium term, targeting the next resistance at ₹4,714.40 and beyond. However, a failure to hold above this breakout level may see the price retest support around ₹4,000.
NSE:MAZDOCKLong
by AngshumanSaikia
SUPERSuper has been powering through the uptrend since the beginning of September. Today, the chart indicates strong buying volume that strives to break resistance to the next resistance level. There is a red candle stick with a long wick and shorter body and a green candlestick with a long wick and longer body, indicating future bullish momentum. Indicators show lots of buying power, which will help with the upward trend for a future breakout. Support - $1.24 Testing Resistance/Possible Support - $1.35 Resistance - $1.42 Fear & Greed Index (Binance) - 65 Greed
KRAKEN:SUPERUSDLong
by LOWCO_487
1
Crude Oil (CL1!): Why We’re Still Expecting Lower LowsAt the end of last week, we fine-tuned our Crude Oil outlook, and we are still expecting lower lows to take out the sell-side liquidity below. Our limit order at $63.23 remains valid, even after last week’s pump, which was driven primarily by rising tensions and the ongoing war in the Middle East. Oil gained 13% over five sessions following Iran’s attack, as traders feared Israel’s response might target Iran’s oil infrastructure, potentially cutting into the country’s 1.7 million barrels per day of exports. There are also concerns that a broader war in the oil-rich Persian Gulf could threaten nearly a third of global oil output. However, the geopolitical risk premium may be fading due to Israel’s delayed response. The geopolitical risk premium has an unclear and unpredictable expiration. When that moment comes and is not supported by real, fundamental factors—such as a substantial supply shortage due to the conflict—the upward movement in oil prices will not be sustainable. The longer this takes, the more the price increase will slow and potentially reverse, which is exactly what we are starting to see in the chart. While Crude Oil respected the 61.8% Fibonacci level almost perfectly, it found stronger resistance at the POC just above that level. Given the bearish RSI divergence, we continue to expect Oil to move lower, provided the conflict in the Middle East does not escalate further.
NYMEX:CL1!Long
by freeguy_by_wmc
GBPUSD Long 11/10/2024Asset Class: Forex Income Type: Weekly Symbol: GBPUSD Trade Type: Long Trends: Short Term: Down (1H, 4H) Long Term: Up (Daily) Set-Up Parameters: Entry: 1.30616 Stop: 1.29970 TP1 1.32519 (3:1) Trade idea: 4h DBR at breakout, Downtrend Reversal to Uptrend RSI oversold and showing strong Divergence. !!Be aware of pending Economic Reports. If price is within 20 pips of proximal value at time of major impact report, then Confirmation entry. Trade management: **When price hits 1:1 or T1, consider moving stop to entry in case of pullback. **Disclaimer**: The trading strategies, ideas, and information shared are for educational and informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any securities, currencies, or financial instruments. You should do your own research or consult with a licensed financial advisor before making any trading decisions. The author assumes no responsibility for any losses incurred from following these trading ideas.
Long
by MESHANL
EURUSD - Technical Analysis [Short Setup]🔹 EURUSD Analysis on 1HR chart - The current Trend is BULLISH - there is Bearish divergences -Rising Wedge reversal pattern is form 🔹 Trade Plan - Entry Level = 0.67295 - Stop Loss = 1.11500 - TP1 = 1.11030 - TP2 = 1.10790 🔹 Risk Management - First TP is 1:1 - Second TP is 1:2 🔹 How to Take Trade? - Only risk 2% of your portfolio - Take 1% risk entry with 1:1 RR - Take 1% risk entry with 1:2 RR Like and subscribe to never miss a new idea! ✌🏼
Short
by Bountysoul
2
GBPNZD Bearish DivergenceThe market has responded to a bearish divergence on the 1H chart, leading GBPNZD to pull back from a key resistance zone. After reaching the strong resistance level of 2.12700, the market formed a daily long-tailed bar, signaling a rejection of that level. Given the overall bearish trend and the appearance of a large bearish candle, the market is likely to continue pulling back toward support levels. It may drop further from the resistance zone and potentially break out of the upward channel as it aims to test those support areas. The target is the support level around 2.10500
Short
by RTED_Investing
Why the USD is about to rally... See chart below please. I would not necessarily listen to certain You-Tubers who write-off important momentum indicators like Stochastics & RSI. My observations of both is that they are wonderful at telling me what is overbought & oversold. When a commodity, currency or stock is in either of these phases, massive & fast swings in price can occur as price comes out of the overbought (shorting) and oversold (buying) conditions. The timeframe of the Stochastic and RSI which I've noticed has the most power and punch with respect to the above is the Weekly but sometimes the Weekly & Daily & 4HR RSI/Stochastics cross-up (x-up on 30/20 respectively) on their zones (buy) or cross-down (x-down 70/80 respectively) on their zones (short-sell). You really need to see the indicators tick-up (buy) or tick-down (sell) firmly through their respective zones (RSI 30/70) STOCH 20/80). The following chart is the Weekly for the USDX. The RSI looks to be really getting under price & packing a big momentum-punch upwards soon. Plus the Stochastics Weekly is looking to cross up on its 20 zone at the same time. When they cross-up and if the Daily simultaneously crosses up it will provide a lot of upward price movement in USD and its index USDX. I have been saying for about a week now that a rally is coming for the USD. This chart is the confirmation.
EIGHTCAP:USDX
by Easy_Explosive_Trading
1
Second Chance Shorting Opportunity on EURUSDIf you’re looking for a second chance to short EURUSD, there’s a promising setup involving a Type 2 Bearish Shark Pattern with RSI Divergence. Let’s break it down. Current Overview: - Type 2 Bearish Shark Pattern: - What It Means: The first target has already been achieved. This provides clarity on the first target but might reduce participation since the initial group of traders who profited may not re-engage. - RSI Divergence: - Signal: This divergence adds another layer of confirmation, especially for traders who rely on resistance and RSI divergence as their entry signals. Strategy: - Second Chance Entry: This setup offers a second opportunity to short EURUSD, with the RSI divergence potentially attracting a new wave of traders. - Profit Factor: The strong profit factor in this trade is what drew me in, despite the potential for reduced participation from the initial group of sellers. Final Thoughts: While there might be fewer sellers this time around, the RSI divergence could bring in new participants, making this a solid second chance trade. Always keep an eye on your signals and manage your risk effectively. What’s your take on this setup? Are you planning to jump in, or do you see other opportunities? Share your thoughts and strategies below! Happy trading, everyone! 🚀
Short
by RaynLim
How to Read the RSI Indicator: The Market's Lie DetectorAttention TradingViewers, market gurus, and Instagram influencers, this one indicator goes hard whenever it’s onto something. Let's talk about the RSI — the Relative Strength Index . This bad boy is like the lie detector test of the market, calling out overhyped moves and under-the-radar opportunities. What’s RSI All About? The RSI is a momentum-based oscillator that captures the speed and change of price movements. It operates on a scale of 0 to 100, and if you know how to read it, it’s like having X-ray vision into the market’s moods. The best part? It’s super easy to use — slap it on any chart, any time frame and let it do its thing. The Numbers Above 70 : Overbought alert! If the RSI shows a reading above 70, the trading instrument may have been partying a little too hard. Anywhere above 70 means that it’s flashing “overbought” – like a sugar rush that’s about to crash. Traders who follow the RSI usually interpret this as a signal to sell and move out of the asset before the line reverses course and dives back under the high-water mark. Sometimes, however, the price keeps climbing well above 70. Below 30 : Now we’re in “oversold” territory – it’s like spotting a hidden gem in a bargain bin. When RSI drops below 30, the market’s saying, “This thing’s been beaten down, but maybe – just maybe – it’s time for a comeback.” Keep in mind that sometimes the dip may keep dipping. How It’s Calculated RSI is all about relative strength — it compares the magnitude of recent gains to recent losses. Picture a tug-of-war between bulls and bears. The RSI score tells you who’s winning the battle right now, but also hints at who might be running out of strength. Trading with RSI Overbought? Maybe Sell (obligatory DYOR) . When RSI hits 70 and above, you might be looking at a market running out of fuel. You may start thinking about trimming your position, or at least keep an eye out for a reversal. After all, what goes up must come down (except maybe Bitcoin BTC/USD ?) Oversold? Maybe Buy (obligatory DYOR) . If the RSI drops to 30 and below, it could be a signal to start looking for a buying opportunity. The market is going through a meltdown and sometimes that’s your cue to go bargain hunting and snap up some discounted assets. Just make sure that your stock or crypto of choice isn’t falling for a specific reason — no indicator can save you from an actual rug pull. The Sweet Spot — Divergences: Ever notice when the RSI and price action don’t agree? That’s called a divergence, and it’s like catching the market in a lie. If the price is making new highs but the RSI isn’t, or vice versa, it’s a clue that something fishy’s going on and you may want to be on the lookout for a sur- price reversal. Bonus Tip: RSI in Different Timeframes Wanna get fancy and earn some bragging rights? Use RSI across different timeframes. A stock might be oversold on the daily but overbought on the weekly. By spotting the trend across different time frames, you can pick your desired time frame to trade in and follow closely. The higher the time frame, the longer the time horizon for the move to actually pan out. So, there you have it – the RSI. It’s not a crystal ball, but it’s pretty close. Use it wisely, and you might just outsmart the market — or at least stay ahead of the next big move. Keep those charts hot, continue learning about technical analysis and go smash those trading goals of yours. 🔥
Editors' picks
Education
by TradingView
17
Elliott Wave DemonstrationDemonstration of Elliott Wave Principles using Bitcoin chart: Rules: Wave 2 never goes below end of Wave 1 => checked Wave 3 is not the shortest of Wave 1, 3 and 5 => checked Wave 4 never goes below end of Wave 1 => checked Guidelines: Guideline of Alternation: Wave 2 and 4 alternates in form (sharp vs sideways), retracement (shallow vs deep) and duration (long vs short) => checked Guideline of Wave Equality: Two out of three waves (1,3 and 5) tend to be equal in length and duration, Wave 1 and 5 meeting this guideline => checked Momentum is highest during end of wave 3, end of Wave 5 normally creates divergence with price => checked Volume during Wave 3 is normally the highest amongst Wave 1,3 and 5 Relations with Fib ratios: Wave 2 retraced Wave 1 by 78.6% (deep) Wave 3 was equal to 261.8% of Wave 1 (longest) Wave 4 retraced Wave 3 by 38.2% (shallow) Wave 5 was equal to 100% of Wave 1 (Guideline of Wave equality)
INDEX:BTCUSDEducation
by MalayKJ
GBPNZD - Potential Perfect StormTaking a look at RSI on the 1 hour timeframe, it's obvious we are getting some bearish divergence after a strong week long rally. This strong bullish price action was attributed to the RBNZ interest rate decesion last week where interest rates were left unchanges at 5.50% However, later today we get the latest CPI data from New Zealand followed by UK's CPI data a few hours later. Could this be a potential perfect storm where New Zealand will show a surprise to the upside followed by a surprise to the downside with the UK? If that happens, I would expect this ascending support trendline to break opening the doors for a reversal. Time will tell but early clues are beginning to develop on the 1 hour timeframe with RSI. That's it - That's all Trade Safe.
Short
by Michael_Harding
Trading Idea: Shorting GBPJPY Amid Conflicting Signals from JapaThe recent statement from Japan's Finance Minister about possibly giving up FX intervention due to its ineffectiveness, which seems to suggest acceptance of the yen's continuous weakness, directly conflicts with recent BOJ communications. Considering this, shorting GBPJPY becomes a highly volatile decision. Nonetheless, a trade is a trade. If this trade goes well, profits are expected within 2 hours. If not, that's part of the game. Trade Setup: Short GBPJPY Entry : 202.97 Stop-Loss : 203.21 Target 1 : 202.60 Target 2 : Open Strategy: - Volatility Consideration : Acknowledge the high volatility due to conflicting statements from Japan’s Finance Minister and BOJ. - Risk Management : Set stop-loss at 203.21 to manage potential losses. Profit Targets : Target 1 : 202.60 Target 2 : Keep open Remember to breathe and prepare for the next trade. What’s your take on this situation? Do you see a different angle or strategy? Share your thoughts and insights below!
Short
by RaynLim