Nifty 50 IndexEducation
FAKE STRENGTH (RSI DIVERGENCES)
Updated
Hello to all mates so here am sharing about something that two important things in trading are contradicting each other and that is price and strength so I am trying to explain this by daily chart of Nifty and that I mentioned previous top to new top price is up by almost 900 points but the relative strength index it is down by 10 major points and this is an indication that price is going up without strength so we can say that no one will be there to hold it there on top without strength.
Conclusion- So what we can get by this study is that we should be alerted when the price is increasing but the strength is decreasing so at this point we can consider this as a profit booking spot or we can consider the previous Top price as a Trailing stop loss and leave it free for go up without strengths.
HAPPY TRADING WITH TRADING VIEW ✌🏽✌🏽
Conclusion- So what we can get by this study is that we should be alerted when the price is increasing but the strength is decreasing so at this point we can consider this as a profit booking spot or we can consider the previous Top price as a Trailing stop loss and leave it free for go up without strengths.
HAPPY TRADING WITH TRADING VIEW ✌🏽✌🏽
Note
RESULT IN FRONT OF EVERYONE OF FAKE DIVERGECE 👍
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.