$USDWTI - RSI Bullish Divergence
And meanwhile, this market went almost unnoticed over the past weeks ... and it has been producing some interesting signs.
Since mid December 2022, this market has been producing a RSI Bullish Divergence, one of the most reliable reversal patterns.
This pattern entails that the bulls are picking up momentum even though the price had recently made new lows. It entails that the price swing lows are made with conviction by the bears. It entails that the bulls are stepping into this market and showing off their strength. This means that they could be about to lead this market.
Perhaps even more important than the RSI Divergence pattern itself, is the area where it has been formed. You know already that I favor slower timeframes ... the markets are fractal and the technicals in the higher time frames, override the technical in the lower time frames. Having this said I invite you to zoom out this market and tell me what you see at the current price level, technically-wise.
The bullish trade laid out in the chart is bold. Despite the bias originating from this analysis, an ostensible entry trigger is still missing. Like a breakout and close above the 50 EMA.
Please remember that analysis might give you a sense of control, but what is paramount in trading is risk management. Why? Because everything can happen tomorrow.
Cheers,
Tenacious Tribe - Backtested Trading Strategies & Studies
Since mid December 2022, this market has been producing a RSI Bullish Divergence, one of the most reliable reversal patterns.
This pattern entails that the bulls are picking up momentum even though the price had recently made new lows. It entails that the price swing lows are made with conviction by the bears. It entails that the bulls are stepping into this market and showing off their strength. This means that they could be about to lead this market.
Perhaps even more important than the RSI Divergence pattern itself, is the area where it has been formed. You know already that I favor slower timeframes ... the markets are fractal and the technicals in the higher time frames, override the technical in the lower time frames. Having this said I invite you to zoom out this market and tell me what you see at the current price level, technically-wise.
The bullish trade laid out in the chart is bold. Despite the bias originating from this analysis, an ostensible entry trigger is still missing. Like a breakout and close above the 50 EMA.
Please remember that analysis might give you a sense of control, but what is paramount in trading is risk management. Why? Because everything can happen tomorrow.
Cheers,
Tenacious Tribe - Backtested Trading Strategies & Studies
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