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Overbought

Extremely important RSI MACD correlation for all to knowLearn the in’s and outs trading with RSI and MACD Most traders are thrown off with these two indicators when both in use when RSI is resting at or above/below overbought and oversold zones. This explanation will answer most of the similar questions I have been getting This is a 1 hour chart for NZDCAD. Looking at the RSI and MACD indicates a clear sell should play out. I have presented an example when that does not happen and how to avoid this. If MACD lines and signal lines have made their cross above or below the zero lines a trend is generally established. Often we will see MACD and signal lines make multiple up and down crosses while well above or below MACD 0 lines. This confirms a trend has continued with pullbacks. The way to determine the true future direction is to correlate the remaining hourly charts specifically the 2 hour chart. I think the 2 hour chart represent the most accurate trend play out. So as seen here on the 1 hour chart although the MACD and signal line crossed with RSI in overbought zone the two hour MACD chart represented a strong trend going up through MACD zero line and histogram bins confirming the trend is continuing up. The next step is to observe correction on the 2 hour chart. Once correction begins the 3 hour chart represents its trend continuation with MACD and signal line flowing up through the 0 line. Then the same observation with 4 hour chart. Ultimately this is how I determine when a longer term trend is going. Please ask questions and let me know what you think!
by Pika7993
4
WHAT'S WRONG WITH AMAZON?Please hit like and share your support :-) One word: price. That’s because the company falls in the top-10% of most expensive U.S. companies. To justify its current value, Amazon would have to compound growth at 14% over 10 years. The company would also have to slow working capital growth significantly, netting its capital requirements to zero over the long run. Amazon is still a great business: investors should expect Amazon to win massively in e-commerce, cloud computing, and digital media. A decade from now, Amazon will almost certainly still dominate the global retail industry. But when it comes to the company’s stock, investors should keep in mind that AMZN is currently overvalued and overbought. By any conventional measure Amazon (NASDAQ:AMZN) is overvalued. With a market cap of $1.66 trillion, AMZN stock is being valued at over four times its potential 2020 revenue of $400 billion. That's based on its second quarter sales of $101 billion. As with the other Cloud Czars — Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet, and Facebook (NASDAQ:FB) — Amazon’s current price is built on the COVID-19 market and the Fed. It’s not based on Amazon’s performance. And that is the biggest concern for price support at these high levels. Thank you for taking the time to read and please hit like, Ev Sources: Investorplace
NASDAQ:AMZN
by BlockTechEv
6
UBER Over Bought UBER is extremely overbought. Here is a breakdown of the technical indicators and my plan. With an RSI of 91.04 for the last 14 two hour candles it's a given that UBER is madly overbought. However, Bollinger bands have not crossed in a downward direction giving a sell signal, and the MACD shows some room to grow still. Unless the downward curve happens during the first two hours of Mondays open. This stock remains on my watchlist and I will most likely be shorting once I get a sell signal on both the Bollinger Bands and MACD.
NYSE:UBERShort
by Myantman101
Relative Strength Index Masterclass Part 1Relative Strenght Index(RSI) RSI is a momentum oscillator, whereas the momentum is the rate of the rise or fall in price. RSI is an oscillator ranging between two extremes, in the case of RSI, it ranges from 0 to 100. The relative strength index is computed with: RSI = 100RS/(1+RS); where RS is relative strength. RS= (Previous Average gain*13+Current gain)/(Previous Average loss*13+Current loss) Relative Strength is a ratio of a stock price performance to a market average (index) performance. RSI will rise as the number and size of positive close increases and will fall as the number and size of losses increase. There are two terminologies for RSI: Lookback period: The time frame that is used to calculate the relative strength, by default it is 14. A look-back period greater than 14 will give a smoother RSI signal while less than 14 will give a rough volatile RSI signal Threshold Frequency: The oversold-overbought value ranges are the threshold frequency, default is 70-30 (which depend on various factors reasons such as risk factor), for eg. 80-20(less risk) and 66-33 (more risk) RSI touching the overbought condition is a bearish sign (prices are likely to go down) while RSI attaining oversold condition is a bullish sign (prices are likely to increase) There are many ways of using RSI as an indicator Oversold-Overbought Region : Oversold Region - The situation at which a lot of selling has happened and everyone who was willing to sell has sold, RSI value less than 30 Overbought Region - The situation at which a lot of buying has happened and everyone who was willing to buy has bought, RSI value greater than 70 In this, we have default values for the lookback period(14) and threshold frequency(70-30) which you can change according to your requirement and risk management. A look-back period of more than 14 would be more interested in long term trend while less than 14 would be inclined towards short term trades. The look-back period can also be increased to smoothen out the RSI line. A threshold of 80-20 (more-safer) or 66-33 (more-riskier) can be taken into consideration. A Buy signal will be generated when RSI is less than 30 i.e. the oversold region while a Sell signal will be generated when RSI is greater than 70 i.e. overbought region. 50-Level RSI Midline The overbought-oversold condition helps detect sudden changes in the momentum of price without providing much information about the overall trend of the market, therefore using the overbought-oversold strategy without getting information on the overall trend could be a bit risky. Thus we use RSI with different timeframes and the threshold for trend information as well as signal generation. In this we will have two different RSI: A RSI with the look-back period of 20-days and 50-50 frequency, also called midline RSI. In an uptrend, this RSI is above 50 and below 50 for a downtrend. A RSI with the look-back period of 5-days and 66-33 frequency, the look-back period is sufficiently low so that in a predominant trend, local maxima or minima can be used for generating buy or sell signal with the small look-back period RSI ensuring the signal is reactive to current price fluctuations. Thereby, an uptrend is signaled if 20-RSI is greater than 50, with the buy signal being generated in the uptrend with 5-RSI in the oversold region while a downtrend is signaled if 20-RSI is less than 50, with the sell signal being generated in the downtrend with 5-RSI in the overbought region. A buy signal is generated when 20-RSI is greater than 50 and 5-RSI is less than 33 while a sell signal is generated when 20-RSI is less than 50 and 5-RSI is greater than 66. A lot more interesting things can be done using RSI, about which we'll be talking in the next Masterclass on RSI, STAY TUNED! ---------------------------------------------------------------------------------------- Your questions and comments are most welcome. If you find the post useful, please like, share, and follow to make sure that you get more information once I publish it. - Mudrex
COINBASE:ETHUSDEducation
by Mudrex
8
13.8k or 7.8k? ~ DECISION TIME FOR BITCOIN IN THE NEXT WEEK -Yurlo Please SMASH the like button if you appreciate the visuals I've provided for you today 👍 I've got both scenarios CLEARLY painted for you guys (bullish and bearish bias) In the next week I'm sure we'll get a better understanding on the market direction and what's in store for the month of October. With the US elections coming up I wouldn't be surprised if the markets start to get VERY volatile. Today is Sunday, and this day specifically usually paints the picture for the markets and how they will look over the next week. Anything over 11k and I'm sure we'll see 11.2k - 11.4k Anything under 10.5k and I'm sure we'll see 9.8k- 10.3k Stoch RSI is suggesting possible overbought price action: will provide updates around today's daily close (8pm EST) Are you currently bullish or bearish for $BTC (Bitcoin) or any market really. Remember to stick to your trading plan unless your ideas get invalidated. Sticking to low leverage will allow your brain to function at a more logical level instead of getting sucked into the head games played by the markets. Proper sleep, eating well, and most importantly taking care of yourself will lead to a successful trading career. 90% of traders fail, don't be apart of that group. Learn how to outperform the market by finding your niche in the market, and what works for you.
BITFINEX:BTCUSDLong
by Yurlo
27
MRNA - THE CEO THAT SOLD - SHARE YOUR FEEDBACKPLEASE READ THE ENTIRE POST, IT MIGHT JUST SAVE YOU A SOUR INVESTMENT I have been following MRNA for about a month now, and something interesting has happened that not many people know about. On 4 September, news came out that the CMO, the President AND the CEO have sold large if not all of their holdings.* Now the company says that this is no reason to panic. (sounds like what we were told about corona in December...) On the trading platform I use, I have also gotten a notification about insiders selling. This is a built in strategy used along with others to determine the market consensus of the stock (buy, strong buy, hold etc) We can all probably agree that when head management sell most of their holdings, and not 1 person but 3 senior members, it is generally not a good sign. Now here is where I'd like your feedback - The large selling off their stocks hasn't been reflecting in the market. In fact, MRNA has been on one long bull run with minor short term bearish chart patterns. Why would it be that the sell off doesn't reflect in the market? I personally sold my stock immediately after I saw a report on this from Gurufinder, later confirmed by more mainstream news and other platforms. My opinion is that The company has to portray that they believe their stocks are going all the way up which in this case, selling off massive holdings at the peak tells me that they are taking their profit. Compare this to PFE (Pfizer), whos director INCREASED his holdings. Now that speaks of confidence in the company, right? * INFO FROM MY TRADING PLATFORM CEO, SOLD $1,293,810, DATE 18.09.20 PRESIDENT, SOLD $1,228,468, DATE 15.09.20 CMO, SOLD $1,255,321, DATE 15.09.20 Please share your constructive and respectful feedback, and thank you ! Hit like if you found this interesting, Ev
NASDAQ:MRNA
by BlockTechEv
7
$BTC Still expecting 11.2-11.4s before actually breaking downI dont see any reason to be super bearish here. Yes we have sell signals from 4h-9h. Short scalps are safe but I am still holding ontop my swing longs from 98/99 until we get to atleast 11.2-11.4 zone. The black area that is highlighted has not been tested yet. Usually $BTC likes to retest areas that it previously break down from before breaking into a new range. Conclusion. I am scalping shorts but looking to fill more longs on the way do wn. I think 10.7s will provide a generous bounce back up. Follow me for updates on bitcoins move. I will be releasing youtube content shortly explaining how I scalp with the indicators!
Long
by mlouca