QUITE CLEAR DIVERGENCE FOR DOWNTREND
Updated
Another strategy there I use when markets shows range behavior and which was quite useful to me, is RSI (14close) divergence.
When you are in a trend, in this case uptrend, and market makes a higher high (see the blu rectangle) but RSI makes a lower low(see the blu rectangle), means that price action and indicator don t agree on the direction and trend is losing momentum with very likely possibility to change it.
ENTRY: cause sometimes it may be a false alarm, I use two type of confirmation to justify my entry and start taking profit
-20 period moving average : when price cross MA in the direction you expect the trend will change, then entry the trade and take profit when price reaches next support
-divergence happens in area of support/resistance, if price breaks it, here is another confirmation to enter the trade.
Looking at the chart now, once said that, I'm therefore short and I will entry as soon as price breaks the new support (also fib level 61.80% at 1254.20 and cross the MA.
See my previous idea to check how I do trading and load the price to see where the price actually went so that you can have an idea on the accuracy of my systemS.
Happy trading to everyone.
When you are in a trend, in this case uptrend, and market makes a higher high (see the blu rectangle) but RSI makes a lower low(see the blu rectangle), means that price action and indicator don t agree on the direction and trend is losing momentum with very likely possibility to change it.
ENTRY: cause sometimes it may be a false alarm, I use two type of confirmation to justify my entry and start taking profit
-20 period moving average : when price cross MA in the direction you expect the trend will change, then entry the trade and take profit when price reaches next support
-divergence happens in area of support/resistance, if price breaks it, here is another confirmation to enter the trade.
Looking at the chart now, once said that, I'm therefore short and I will entry as soon as price breaks the new support (also fib level 61.80% at 1254.20 and cross the MA.
See my previous idea to check how I do trading and load the price to see where the price actually went so that you can have an idea on the accuracy of my systemS.
Happy trading to everyone.
Trade active
As you can see, in the area of the RSI divergence which just made a new lower high, price is about to cross 20MA.If candles closes below the MA I will enter the trade short with small lot and add more if direction keeps going down breaking support at 1254.50 with TP at the next support and SL at previous resistance.
Trade safe people !
Trade active
entered with small lot as MA is been crossed.....I will add more if it breaks 1254.20 support and fib levelTrade active
expect it to retest 1260-1261 exactly where my SL are, before going down....Trade closed: target reached
support reached at 1248......entered short at 1257 after price crossed MA.......+80pips
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.