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Overbought

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
NVAX UP 13%NVAX is HOT right now. Earlier yesterday I expected a pullback, but there is no way of telling when the buy craze will end. What I'm monitoring from the chart: Momentum, to indicate a possible trend reversal - for now the momentum is still HOT RSI, also to monitor momentum and buy power - right now the buyers are in firm control Bollinger Bands, to monitor the volatility and overbought / oversold area - we have been running overbought for days So at this point, NVAX is going incredibly strong but I am keeping an eye out for a possible sell off or minor correction to enter again with a lower position. Hit like if you found this helpful Thanks, E
NASDAQ:NVAX
by BlockTechEv
1
SHORT Signal: YFI is overvaluedYFI has gained x10 over the past few weeks. it just recently got added on Coinbase which is a home for most retail traders so it pumped EVEN MORE! and that happened after a short break! In my opinion, this market has to CALM DOWN! It's not like this can rise forever and the way it rose is NOT NORMAL. Many investors are eventually going to take their next step which is CASHING OUT!. Think smart before buying. Many retail traders will get trapped by this while all you gotta do is DUMP IT!!! Stop: 41000 Enter: 34000-36000 TP: 18000-21000
by MarketSniping
8
D1 Downside Favored (Short Term)! Triangle PatternUntil recently gold has been making considerable movement to the upside with no significant retracements. We are now seeing the bullish run slowing down, failing to create higher highs and creating Lower highs (LH). It can also be seen that price has not been able to break below the $1900 psychological level. Therefore, based on price action, if we see a break and close below the 1900 level, it is quite possible to see the 1800 level exposed. I will be looking for a break and retest of 1900 and a valid entry reason before i can enter any position. If a valid entry does not present itself. i will not be taking the trade.
FX_IDC:XAUUSDShort
by lefergs
Special Analysis: Are you prepared for the Euro crash!!!Hello everybody, in this special analysis, I see a nice opportunity that maybe Euro is weakness the trend!!! Because we could see a bearish season. Now, i share you my screenshoot for you, because we could see a possible USA recovery for the next days between weeks. First, we see in Daily that Euro is weakness boughts and we are in the strong resistance at $1.18 that was broke up, but in that case we could see a sell off of Euro as US is into the recovery for the past speculate news that I discuss with you. Now, this analsyis of Daily is a key important to find up a medium term profits. Now, this is an weekly analysis that we broke up the red resistance, obvously this red resistance is a weekly zone, and it's could be a go back below as rejetion, because as we are in the bullish channel, we could to end the boughs and startind the bearish season for the next days as I predict. Finally, as I add the 3 day charts, we see a possible drop of the price in medium term, also the RSI show a pull back in the 80 parameters and that confirm an exactly point to find down sell off. Now, I share you my fundamentals keys for you: 1. Euro rises above key $1.20 USD level for first time since May 2018 Now, if you see Euro is go up so much, but need to make a correction before to continue up with their bullish trend. Also, using the Fibonacci we could see two scenarios at $1.16 USD and a possible to reach at $1.1550 USD, So, my objective is simple find down 330 pips, its a good bussiness and profits to earn down.
Short
by harisonhbn9718
2
BANKNIFTY Weekly Review Banknifty Monthy - Banking Index held its previous month low and also surpassed the previous month high and I am hoping it be closing above the previous month high tomorrow, and if it does and it is going to be a very good monthly closing, indicating likely continuance of the recent up move. Banknifty Weekly - On Weekly, it formed a Big Bull Candle closed near it high, such types of candles as good support, hence for this uptrend to continue, the index should hold and trade above this candle low i.e 22410. Banknifty Daily - On Daily, you can see, from many trading sessions, it has been forming candles with higher highs and higher lows, and Friday candle is a big bull candle closed near it high, Such Big candles when formed after a good move, often indicates the prices are overextended and it might rest for a while or retrace some part of it. There is also a crab pattern formed on the daily chart suggesting a resistance around 24560-24660. Price action near crab resistance is usually wild, by wild, I means you can see spikes, large movements in the prices in any direction. So if the market opens flat or gaps up tomorrow, it might also test 25150 on the upside or the support levels mentioned above. Conclusion: Trend is up on all time frames, it's a buy on dips on the market because it is always better to trade in the direction of the trend. Currently, the prices look extended on the daily chart and any dip would likely be absorbed quickly. Immediate support is around 23590 and 22980 levels Disclaimer: Being a trend trader, I won't be trading any index tomorrow, will wait for it to get settled.
NSE:BANKNIFTY
by manuagarwal21
3
NOG is worth a gambleNOG is a oil and gas company in Minnesota, which is an interest stock that poped up on r/pennystocks and think it might be worth to toss in some money into it. It hasn't perform well at all, yet the reason for this gamble is that the election is coming up and Republicans are pro oil and gas as further green technology is being developed, yet the Democrats want to go full green with their green new deal which could destroy the oil and gas and company. News -Elections are coming up this November for the US and Minnesota is a key battleground state. It was Democrat in 2016, yet this year its classified as a battleground state and following 2016 Democrats won with a 1.5% margin. Pretty dam close. Current polls shows that biden was winning by 18, yet now only 2. Source: projects.fivethirtyeight.com -ER wasn't great, yet could be due to fact of the covid 19. According to USAtoday as of 8/25, Minnesota is growing in the number of cases. TA -Now the upside potential out weights the downside with .6377 being on the table which is a 8.6% drop in price. The upside ranges from 5.7%-50% in the short term from tagets of .742, .8515, and 1.0494. -This stock is in a long term downtrend, yet high vpvr shows a range of .742-.8515 would be in the realm of possibilities and could be a nice short term trade. -MACD is rising which is bullish -RSI is just overbought, yet could be overcome with sideways movements or extreme volatility coming soon. Final Thoughts My political view has no affect, yet I would assume a Trump victory would push this stock higher or lower. Whatever party you are a small gamble in a small oil and gas stock from a battle ground state wouldn't be a bad idea. I took a position in this stock today just to see where it goes when we get close to the election/debates/ and after the elctions. If movement starts going up showing massive buys you could suspect the oil sector will being pushing up rapidly. So in the meantime watch the polls, if they are even worth to watch after 2016, to see who Minnesota favors and watch tweets from Trump about Oil and Gas.
NLong
by nathanielx9
BTC OVERBOUGHTBelow you can see 4 indicators pointing out that BTC is currently overbought. Take a look at my previous post to see what indicators I use and what they mean. At this point we will have to see how the market responds to BTC being overbought. What happens often, is many traders use this as an indicator to sell. That is why we need to keep a close eye on the Balance of Power, the second blue lines chart. If the value is in the negative more frequently, we can understand that traders are using this opportunity to sell in overbought territory, then we can expect a bear run. However, if the Balance of Power is above 1 more frequently, the buyers are still in control and we can expect a bull run. Keep watching the Balance of Power ! Hit like if you found this helpful. Thanks, Ev
BITSTAMP:BTCUSD
by BlockTechEv
15