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Overbought

GBPAUD - Getting Over-Bought ❗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. GBPAUD has been overall bullish trading inside the rising broadening wedge pattern in red, however it is currently approaching around the upper trendline. Moreover, the zone 1.92 is a resistance zone. 🏹 So the highlighted purple circle is a strong area to look for sell setups as it is the intersection of the blue resistance and upper red trendline. As per my trading style: As GBPAUD approaches the purple circle zone, I will be looking for bearish reversal setups (like a double top pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
5
BTC Bitcoin Double Top on Overbought AreaBitcoin Price Target was reached after the Wall Street-backed EDX Exchange Launch: Bitcoin has formed a double top pattern within an overbought area, which suggests a potential bearish reversal in the near term. The double top pattern is characterized by two distinct peaks at approximately the same level, indicating a potential exhaustion of buying pressure and a shift towards selling pressure. Considering this double top formation and applying Elliott Wave theory, there is a projected price target of $28,300. Elliott Wave analysis aims to identify repetitive patterns in market cycles, including impulse waves and corrective waves, to predict future price movements. Looking forward to read your opinion about it.
Short
by TopgOptions
Is TSLA overbought and ready for a retracement?TSLA has run up over 100% this year in two separate waves. Some traders based on the the magnitude of the current wave say it is overbought? But is it or are they just trying to rationalize a short trade at what they think is the top? Are Jim Cramer and Kathie Wood wrong? On the daily chart of TSLA, I have added a long term volume profile, an anchored VWAP with lines for the mean and = /1 two standard deviations. I have drawn two zones of horizontal resistance based on pivots in the past couple of years. Zero-lag MACD and RSI indicators are added as well. I make the following points: (1) Price is above the high volume area of the profile but not significantly so. (2) Price is below the resistance zones and TSLA may have enough momentum to break through them without hesitation. (3) Price has crossed over the mean anchored VWAP but has a long way to go before it ascends to the second standard deviation where institutional traders may be prone to take short positions ( overbought) (4) The MACD indicator shows K/D lines in parallel and ascending above the histogram. With no lag to contend with a cross of the lines would be an early indication of an overbought condition. Bearish divergence would suggest TSLA is overbought but there is none. (5) The better RSI indicator shows the value rising from 40 to 70 in the current uptrend. A rise over 80 and then a drop to show bearish divergence would be an indication of an overbought condition. This has not occurred. Based on all of this, I can easily conclude that TSLA is not overbought. Any traders who say it is overbought may be simply trying to discourage further buying. I suppose that they might do so because they are in a short position that is now essentially self-liquidating. If that is the case, their better approach might be to get rid of their position, buy to cover and help TSLA move higher. I will continue to try to add to my long position in TSLA when I see daily lows on the 15 or less-minute time frame. From the overhead resistance, I can appreciate there is still significant profit potential with TSLA especially since the resistance may evaporate away letting TSLA bull run its way " blue sky".
NASDAQ:TSLALong
by AwesomeAvani
5
GBPJPY - OverBought Zone ↘️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. GBPJPY has been overall bullish trading inside the red rising channel, however it is currently approaching the upper red trendline. Moreover, the green zone is a strong resistance. 🏹 So the highlighted purple circle is a strong area to look for sell setups as it is the intersection of the green resistance and upper red trendline. (acting as non-horizontal resistance) As per my trading style: As GBPJPY approaches the upper purple circle zone, I will be looking for bearish reversal setups (like a double top pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
7
Does SPY want a correction? Maybe not but it will get one.SPY has had a good run this spring. However, things are changing. Just this week, the debt \ ceiling got raised. The fed will be auctioning large amounts of treasuries to pay bills. This is money that will not go into the equities markets. Buying volume on a dollar basis will likely go down as a consequence. On the daily chart with a double Bollinger Band setup, SPY is more overbought than ever. The part of the body of the last candle of this past week went outside of both the inner and outer bands. Looking back this has not occurred in well over a year. Candle wicks did go outside the bands in late October 22 and mid-December 22. On lower time-frames SPY has already pulled back into the Bollinger Bands and begun a reversal. I believe that many traders will take their profits off the table and take another look at bonds and treasuries. ETFs like TLT and TMF may see significant inflows no matter for stocks in general may not. I see this as a SPY pullback or correction upcoming for which to take a short trade. I will look at SPY and QQQ put options with very short DTEs as well as call options on SQQQ. For stock purchases, I might go with the ETFs SPXS and SPXU. The simple and basic analysis is their chart shows price candles partially below the lower Bollinger Bands, the inverse of the SPY. They are oversold and accordingly available for purchase at a discount.
AMEX:SPYShort
by AwesomeAvani
☆ The Relative Strenght Index (RSI) # on4 ! ☆The Relative Strength Index (RSI) - is a popular technical indicator used by traders to identify overbought and oversold conditions in the market. The RSI with a period of 4 is a shorter-term version that can provide more frequent signals. I use RSI 4 effectively following these steps: Understanding RSI Basics: The RSI measures the strength and speed of price movements. It oscillates between 0 and 100, with values above 89 indicating overbought conditions and values below 11 indicating oversold conditions. Identifying Overbought and Oversold Conditions: When the RSI 4 rises above 89, it suggests that the market may be overbought, indicating a potential reversal or a corrective pullback. When the RSI 4 falls below 11, it suggests that the market may be oversold, indicating a potential buying opportunity. Confirming Signals with Price Action: While RSI 4 can provide valuable insights, it is important to confirm its signals with other technical indicators or price action. Look for additional confirmation such as trendlines, support/resistance levels, or candlestick patterns to strengthen the validity of the RSI signals. Divergence Analysis: RSI 4 can also be used to identify bullish or bearish divergences. Bullish divergence occurs when price makes a lower low while RSI 4 makes a higher low, indicating potential upward momentum. Bearish divergence occurs when price makes a higher high while RSI 4 makes a lower high, suggesting potential downward pressure. Setting Stop Loss and Take Profit Levels: Determine appropriate stop-loss levels to protect your trades in case the market moves against you. Set take-profit levels based on your risk-reward ratio and the potential of the trade. Remember, RSI 4 is just one tool in your trading arsenal. It is essential to combine it with other technical indicators, chart patterns, and fundamental analysis for a comprehensive trading strategy. Regularly monitor the performance of RSI 4 in different market conditions and adjust your trading approach accordingly. Note: The use of any technical indicator, including RSI 4, does not guarantee successful trades. It is important to practice risk management, conduct thorough analysis, and make informed trading decisions based on a holistic view of the market. Always remember that no single indicator or strategy can predict market movements with 100% accuracy. Utilize RSI 4 as part of a well-rounded trading methodology, and continually refine your skills and knowledge through experience and ongoing education. HappyForexTrading ☆ J
OANDA:XAUUSDEducation
by ATU_TAD
Short-Term Technical Analysis:(GOOGL) for the Next Few Weeks!In this trading idea, we delve into the current state of Google (GOOGL) and explore the indications of an overbought condition. With a careful examination of technical indicators, it becomes apparent that a sell-off may be imminent in the near term. The analysis suggests the possibility of Google entering a range-bound phase or even experiencing a continued downward trend. Traders and investors should pay close attention to key support levels as the stock navigates through the next zone, as they may provide valuable insights for potential entry or exit points
NASDAQ:GOOG
by sunitmaity8
3