Bitcoin / TetherUSShort
BTC/USD RSI Overbought Strategy
In this idea I will look into detail how the Relative Strength Indicator has been behaving recently and how it can help us to predict the price of BTC.
The RSI is a momentum indicator. If it increases above the value of 70 we can call it an 'overbought RSI'. This indicates that the price has received an unsustainable upward price momentum, and we expect the price to quickly move back to a more balanced RSI. The neutral RSI is 50.
If we look at the recent 15m behavior of BTCUSD we can see that the RSI has been overbought three times. After each time a sharp drop in price occurred. Now that the RSI just had another overbought signal, we can make a prediction on the extension of this behavior and monetize the scenario by adding a short trade set-up.
I chose the closest price support level for the take profit of the short, to have a maximum probability of reaching our profits.
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- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
The RSI is a momentum indicator. If it increases above the value of 70 we can call it an 'overbought RSI'. This indicates that the price has received an unsustainable upward price momentum, and we expect the price to quickly move back to a more balanced RSI. The neutral RSI is 50.
If we look at the recent 15m behavior of BTCUSD we can see that the RSI has been overbought three times. After each time a sharp drop in price occurred. Now that the RSI just had another overbought signal, we can make a prediction on the extension of this behavior and monetize the scenario by adding a short trade set-up.
I chose the closest price support level for the take profit of the short, to have a maximum probability of reaching our profits.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Thảo luận về những biến động và nói cùng nhau về thị trường giao dịch ở cộng đồng Telegram này nhé!
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.