BRIGADEThe stock has finally moving past the Price Rejection Zone with good volume support. The relative strength is positive and increasing. Money Flow is also turning positive. The Stock looks poised to move much higher.
Relativestrength
DIXION Break outNSE:DIXON
Long time RS positive stock. retesting the 8200 levels after breaking out.
Heading towards all time high.
Trading with RSI: The Bad, The Good and Even BetterIn this video I explain how to use RSI (Relative Strength Index) to make trading decisions. You'll learn how to properly use RSI oversold condition, combining low timeframe price action signals with high level context analysis.
Besides of explaining three different strategies (the bad, the good and even better) I'll do back-testing on historical data to demonstrate how those strategies translate into real trading results.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
GODREJ INDUSTRIES The stock has now successfully taken out the Rejection Zone with consecutive Bullish Effort to Move up Bars. Quality Buying seen with increased Delivery volumes. RS and Money Flow has be strong for some time. The stock likely to move higher now . A test of the Rejection Zone is also possible before the up move.
DOGEUSD Dogecoin pulling back to add LONGDogecoin on the 60 minute chart has been in a good trend up for more than 36 hours. Moving
averages have been diverging but price is now falling in a pullback to the SMA21 and EMA21
while the EMA 50 continues to trend higher. The relative strength look back is solid green.
I see this as an excellent point to add to Dogecoin with the risk being the market cap leader
Bitcoin loses momentum and takes Dogecoin and others sideways or down.
DELL pushes price with a big earnings beat LONGDELL reported earnings 27% beyond the estimates and traders reacted. The indicators show
that relative volume was about 10X the running moving average. The RSI dual time frame
indicator ( by Chris Moody) showed a 50-level cross-over on 2/22 one week before earnings.
That was the best early entry and price is up 20% higher since then. The question is whether
is is overextending and so will retrace. The mass index indicator is suggestive of a reversal.
Overall, I will watch price action for bullish continuation while considering the possibility
of a short sell into a retracement if it evolves. No matter volatility is increased I intend
to make the best possible trade in response to what develops.
EL jumps on analyst upgrade LONGEL like ULTA was beaten down in covid times. It jumped in 2021 and fell in 2022 and 2023.
2024 might be the year they thrive again. On the weekly chart, EL is back to the support of
its levels of 2018. With an analyst upgrade coming from Bank of America it is now getting a
bit of attention. Trend strength and relative strength were down. I see this as a good entry
for a new long position in EL while also looking at ULTA. Targets are the fib zone and a
correction / consolidation area on the downtrend so 200 and 250. Now is the time to invest
in female beauty.....
The next alt season.The relative strength oscillator begins to lean towards the alts, after an initial important upward movement in BTC, the alts seem to want to follow the trend. I can deduce this from the fact that for the first time in the last two years, the oscillator has been downwards for longer than upwards, furthermore it has pierced the previous low, therefore added to the alts charts which are mostly set upwards, we can hope that this is the beginning of the new alts season. I don't expect the crazy percentages of previous years, but I can't rule it out for sure. The only thing I can do is expose myself more towards the alts hoping to have hit a good moment to establish that we are in the alts season. I put some signals in the history to see what happened in the past, it is clear that once the zero line was broken, then a period almost a year and a half long began where the alternative currencies to bitcoin had better performances than to the queen of cryptocurrencies.
Bitcoin consolidating and waiting for possible reversal SHORTI see Bitcoin as ready to fall as its next move. Short sellers are positioning. Volumes are falling
in a signal of capitulation. Relative strength is showing bearish divergence while price is in
consolidation. The boxes are checked and it is the weekend when the price volume trend is
typically sideways. This is demonstrated by the flatline PVT. I will short Bitcoin when I see
a bit of a volume push. I will reassess by crypto-related stock and options positions in due
diligence to protect risk.
DIS moves higher in realtive strength LONGDisney had an excellent earnings report last week. Today it is moving off its support of the
moving average cloud on the chart and going higher on a day when the general market is
sideways at best. A table shows its strength as compared with other commonly traded stocks.
I will take a long trade here and perhaps hold it until the next earnings.
NVAX- a medical penny stock Buy Weakness LONGNVAX on a 120 minute chart demonstrates a trend down in the past month after a period of
consolidation producing the POC line on the volume profile. The MACD shows some bullish
divergence. The volume profile has high volume nodes at 4.0 and 5.0 separated by a relative
volume void. NVAX fell quickly through that void. It can just as easily rise through it. See the
linked article on NVA from TipRanks. Options volume and pricing analysis is that bets are looking
at5.0 diligently. Fundamentally, NVAX has been range limited by its focus on COVID but it does
have other projects in its pipeline admittedly on various timelines with varying probabilities
of capitalizing on them depending on clinical trials FDA approvals and so on. On the imbedded
relative strength table as compared with SPY and peers in the pharmaceutical, biotechnology,
medical device and healthcare spaces NVAX compares favorably with MRNA its closest peer
but is weak compared with most of the others I have selected especially with LLY, which is
high-flying from its anti-obesity drug breakout. Device companies Stryker and Intuitive Surgical
are quite strong as well. United Healthcare is dominant in the insurance subsector and strong
overall.
One often effective strategy is to buy when an instrument is oversold and undervalued at a
discount. I will buy NVAX here no matter that I have insider connections with one of those
medical device companies and a few not on the list. Sentiment only goes
so far. I found the article compelling and so Novavax long I go. On a trading site left unsaid
my screenname is "Bottom Feeding Grinder". I have an appetite for NVAX found at the bottom
right now. This is a reversal/reversion to the mean long trade. It is not without risk. As a
penny stock with high volumes, low cost of entry and perhaps low floats, volatility is
underscored and exaggerated if a volume inflow gets underway That said, a short squeeze
is within the spectrum of possibilities. Enough said for now.
TSLA makes progress in trend up LONGTSLA on the 120-minute time frame has finished off an inverse head and shoulders pattern with
the bottoms on January 26 February 6 and February 14 respectively. Price rose above the
neckline at 197 and appears to be trending to retest it. My target is 220 which is the 0.5 Fib
level of the prior immediate recent January trend down. The relative strength fast line
is dipping for a bounce off the 50 level horizontal line. The past RSI indicator shows much
improvement in strength. I will buy TSLA shares and options when price gets retraced to about
197 =/- 0.50. I expect this will happen on the next down general market day which could
be as early as the morning after this present holiday.
TSLA - Relative Strength compared with peers and others SHORTOn a daily chart, the price action of TSLA is shown to be in a descending channel. An indicator
has been added to show the strength of various symbols as compared with QQQ the broad ETF
tracking the NASDAQ 100. TSLA is doing very poorly but better than FSR and XPEV which are
performing poorly but comparatively okay compared with TSLA. Of the symbols on this list
which is customizable and is a comparison on a daily time frame back six months NVDA, AMD
and META as well as NFLX are outperforming QQQ the most. I have used this to further
validate my TSLA put options overall as I also look at other stocks that may be of interest
based on six months of performance.
Mastering the 70/30 RSI Trading Strategy - Plus Divergences!Mastering the 70/30 RSI Trading Strategy: A Comprehensive Guide
The 70/30 RSI technique stands out as a popular and effective method for making informed decisions in the financial markets. Leveraging the Relative Strength Index (RSI) indicator, this strategy empowers traders to navigate the complexities of buying and selling various financial instruments, from stocks to currencies. In this article, we delve into the intricacies of the 70/30 RSI trading strategy, exploring its fundamentals and practical application in forex trading.
Understanding the 70/30 RSI Trading Strategy:
Developed by renowned technical analyst J. Welles Wilder, the RSI indicator serves as a powerful tool for evaluating market strength and identifying overbought and oversold conditions. With a range from 0 to 100, the RSI provides traders with crucial insights into market dynamics, enabling them to make timely trading decisions.
At the heart of the 70/30 RSI strategy lies the establishment of two key threshold levels on the RSI indicator: 70 for overbought conditions and 30 for oversold conditions. These thresholds serve as crucial markers for generating buy or sell signals, offering traders valuable guidance in navigating market trends.
⭐️ Adding and Setting Up the RSI Indicator on Your Chart:
The RSI (Relative Strength Index) Indicator is a freely available tool accessible within your TradingView Platform, irrespective of your subscription plan. Whether you're using a Free membership or one of the Premium plans, you can easily find and add this indicator to your charts. Below, I'll guide you through the process of adding and customizing the RSI indicator on your platform with the help of the following images.
To begin adding the RSI indicator to your chart:👇
You can also customize the colors to your preference, just like I did by selecting your favorite ones.👇
Now, let's delve into what the RSI indicator is and how to interpret it.
Interpreting RSI Signals:
In essence, an RSI reading of 30 or lower signals an oversold market, suggesting that the prevailing downtrend may be ripe for reversal, presenting an opportunity to buy. Conversely, a reading of 70 or higher indicates overbought conditions, implying that the ongoing uptrend may be nearing exhaustion, presenting an opportunity to sell.
The Relative Strength Index (RSI) Explained:
As a momentum indicator, the RSI measures the speed and magnitude of recent price changes, providing traders with insights into whether a security is overvalued or undervalued. Displayed as an oscillator on a scale of zero to 100, the RSI not only identifies overbought and oversold conditions but also highlights potential trend reversals or corrective pullbacks in a security's price.
Practical Application of the RSI Strategy:
Traders employing the 70/30 RSI strategy must exercise caution, as sudden and sharp price movements can lead to false signals. While RSI readings of 70 or above indicate overbought conditions and readings of 30 or less indicate oversold conditions, traders must consider additional factors and use other technical indicators to validate signals and avoid premature trades.
Let's examine a few examples.
Example No. 1: EUR/USD Daily Timeframe
On the EUR/USD daily timeframe, we observed an overbought condition indicated by the RSI rising above the 70 level. This signaled a potential reversal in price direction. Subsequently, the price indeed reversed, confirming the overbought scenario.
It's crucial to emphasize that while scenarios above the 70 RSI level or below the 30 RSI level suggest potential reversals in price, it's essential to complement your analysis with additional filters. These may include consideration of the economic environment, effective risk management strategies, and identification of triggers or patterns before initiating a trade. Below, I'll illustrate a potential trigger that aligns with the RSI 70/30 strategy: the crossover of the RSI line with the RSI-based moving average (MA).
Example No. 2:
In this example, the RSI strategy proved effective as we observed the price falling below the 30 level, indicating potential oversold conditions and a forthcoming reversal from the market's potential bottom. Additionally, in the image below, you'll notice the introduction of white lines, known as "divergences." I'll provide a clearer explanation of divergences in the next example.
Example No. 3:
In this example, denoted as circle N.3, we encounter another instance of the RSI reaching the 70 level, indicating an overbought condition. Once again, the strategy proves effective, but this time, we notice a shallower reversal compared to the previous two examples.
Following this reversal, the price experiences growth, presenting a new opportunity for traders with a subsequent higher high. However, unlike before, this high does not breach the 70 RSI level, resulting in a deeper reversal.
This scenario exemplifies a "divergence."
But what exactly is divergence trading?
Divergence trading revolves around the concept of higher highs and lower lows.
When the price achieves higher highs, you would expect the oscillator (in this case, the RSI) to also record higher highs. Conversely, if the price makes lower lows, you anticipate the oscillator to follow suit, registering lower lows as well.
When they fail to synchronize, with the price and the oscillator moving in opposite directions, divergence occurs, hence the term "divergence trading."
I'm confident that the previous three examples were well explained to help you understand the 70/30 RSI strategy, along with the MA moving average trigger and the relative divergence strategy. Please share your thoughts in the comment section below.
Key Considerations and Limitations:
While the 70/30 RSI strategy offers valuable insights into market dynamics, traders must remain mindful of its limitations. True reversal signals can be rare and challenging to identify, necessitating a comprehensive approach that incorporates other technical indicators and aligns with the long-term trend.
In Conclusion:
The 70/30 RSI trading strategy represents a powerful framework for navigating the complexities of the financial markets. By leveraging the insights provided by the RSI indicator, traders can make well-informed decisions, identify lucrative trading opportunities, and optimize their trading strategies for success in various market conditions.
BTML - Stock is poised for a short term and swing trade , 10-40%The stock has broken it's all time high and given a retest in daily.
Also the stock is retracing from its FIBONACCI 38.2 retracement level in monthly.
Volumes look strong and RSI in Lower time frame supports an entry now.
Sector - Entertainment.
Entry 215 range.
Target - 240, 260, 290.
Swing trade target at 240 - 10-15% ROI.
QQQ and individual stock Relative Strength multi-time framesOn this 15-minute chart I have installed an indicator twice- to compare the relative strength of
several symbols /stocks in its customization. One is set up for a 15-minute time going back
4 trading days while the other on the right 5 minutes with a lookback of only 30 minutes ( fully
customizable). See comments in text boxes on the chart. I believe that this can be used to help
find the best entries and exits for positions to complement other indicators. The setup on
the right is best for intraday trades while that on the left could be used in swing trades.
This could also be used to compare indices, commodities, or currency/forex on long
and low time frames for a similar function.
AAPL awaiting breakout to next supply areaNASDAQ:AAPL consolidating tightly. Awaiting the next breakout to around $195 supply area.
Potentially looking at new highs after that.
These are my views and analysis and is only used for educational purposes. I am not a financial advisor.
Nothing in the information posted here is intended to be or should be interpreted as trading advice.
Cross-Checking Gold’s Supertrend Adaptively on MTFAGreetings Esteemed Investors,
I've received numerous inquiries regarding my gold (XAU) long position. Some of you have even suggested that I might be mistaken and consider XAU to be bearish. While I cannot assess your individual trades, I can provide a more detailed explanation of my rationale.
Comparing Indicators
Top Chart: Supertrend
This chart displays XAUUSD daily candles. I prefer daily candles to analyze gold over a year or more, as this helps filter out noise and reduce false signals. Additionally, I've applied TradingView's built-in Supertrend indicator, which often proves profitable over long timeframes. Observe the 2023 yearly chart of XAUUSD; buying when the Supertrend was positive (green) and selling when it was negative (red) would have been profitable.
Bottom Chart: Advanced Dynamic Threshold RSI
The bottom chart also displays XAUUSD daily candles for 2023, but here, multiple timeframes are considered using the Advanced Dynamic Threshold RSI indicator. This indicator generates weighted buy and sell signals based on RSI analysis, dynamic threshold calculation, and optional Bollinger Bands. Note the different RSIs under the candles (blue, green, and orange). The selling signals appear as red triangles and the buy signals are green triangles.
Comparison: Supertrend vs Advanced Dynamic Threshold RSI
Timelines
In 2023's XAUUSD market, I observed that Supertrend tends to indicate bullish trends earlier than my RSI, while my RSI might indicate bearish trends sooner than Supertrend. The dotted lines on both charts show the timeline of the detected trend. The sooner the trend was detected, the earlier the timeline started. This difference in timelines highlights the potential trading advantage of using both indicators together.
Exclusive & Inclusive Cross-Checking Methods
Inclusive Cross-Checking Principle
My Advanced Dynamic Threshold RSI indicator uses an inclusive cross-checking method, where RSI signals from different timeframes must align for a signal to be displayed. This ensures that all RSI indications are in consensus. However, this method makes the indicator slower to react on bullish shifts.
Exclusive Cross-Checking Principle
I used two charts and two indicators to demonstrate the potential of exclusive cross-checking. In this method, a long signal (Buy sticker) is generated if at least one of the indicators shows bullishness. In this case, one exclusive buy signal is sufficient to display the sticker. This method allows for quicker action on bullish trends.
Selective Cross-Checking Principle
Selective cross-checking combines exclusive and inclusive methods. The key is to understand which indicators tend to predict certain developments sooner. In 2023, for XAUUSD, Supertrend was faster for bullish trends and my indicator was faster for bearish trends. So, I wrote rules like the RSI signals of multiple timeframes must align, but I don't require the agreement of Supertrend and MFT RSI to open a position.
Latest Position
I opened a long position on XAUUSD on November 12th. The original stop loss was $1925, and the potential target is $2072. However, I'm using trailing profit, so the risk-reward ratio has changed. I currently wouldn't open a long position, but I'll keep the existing long position until the trail profit activates or the RSI indicator generates a sell signal.
Disclaimer:
This is not investment advice. Conduct your own research. This publication explains only one aspect of my approach, not my comprehensive strategy. The idea focuses on observations around the price action; reading the indicator descriptions is recommended for understanding of the calculations.
Sincerely,
Ely
Infy - Retest, Basing, Momentum- Restest of 1st Trendline
- 0.5 retracement of the first wave
- Strong Momentum
- Enter Between 1500-1520, SL- 1420, T1- 1670, T2- 1820
- Major Resistance - Related to the event, Breakdown from base & Gap Down
PRAJINDThe stock is coming out of the Supply Shadow of the "BC" bar. The Relative strength is turning positive. Buying Pressure and Money flow are already positive. Another upbar closing above the shadow preferably above today's High will ensure that the stock will move much higher.
Also on the weekly as well the stock is moving above the supply shadow of a BC bar. All key parameters remaining positive.
Despite a strong week, IWM remains in trading rangePrimary Chart: IWM / Russell 2000 Weekly Timeframe
The Russell 2000 (IWM) is often a leading indicator in US markets. It led to the downside in early November 2021 after a false breakout out of its 2021 topping-pattern's resistance around $234. SPX topped nearly two months later on January 4, 2022. While small-caps are not necessarily always the first to make a move, it is something frequently cited by commentators and analysts. This is why the Russell 2000 is important for traders and investors to follow to maintain a deeper understanding of the broader US equity markets.
Despite a very strong weekly close for IWM, its price remains in the lower half of its trading range. This trading range has contained price for the past 1.5 years, since the topping pattern's support (at the upper blue rectangle) broke down in January 2022. Unlike other major US indices like the Nasdaq 100, IWM has continued to struggle and remains well below its August 2022 and January / February 2023 highs.
Two months ago, in a recent post titled " Something is Rotten in the State of Markets ," IWM's underperformance of SPX provided a basis for discussion as to why US equity markets may remain unhealthy despite the bullish price action YTD (see link below). A strong and long-lasting bull market should show signs of broad participation. Many breadth indicators have shown very narrow breadth. It's not a surprise, in fact, that SPX's rally and upside performance has been driven by 5 to 10 SPX names, with the other 490-495 flat, lagging, or up weakly.
Supplementary Chart A
This previous April 10 analysis displayed a hypothetical price path intended to reflect the possibility of more sideways and choppy price action in the intermediate term. The choppy price action has largely unfolded as expected (click the play / refresh arrow on the prior post from April 10, 2023). In fact, IWM's price at the time of the prior post was at $173.89, and a month later on May 8 it had closed almost at the same level around $172.72.
Now IWM appears to be breaking above the recent trading range. Major levels of resistance appear on the Primary Chart as Fibonacci levels (the .618 retracement and the .50 retracement, which is not technically a Fibonacci proportion) as well as the anchored VWAP from the November 2021 ATH. How price responds to these levels will be important to watch in coming weeks especially after June 16, 2023 OPEX—a quad witching event.
It is notable that IWM trades far below its major ATH VWAP from November 2021. Compare how IWM's price trades relative to this VWAP (labeled on the Primary Chart above) with how SPY's price trades relative to its ATH VWAP. SPY's VWAP anchored to its ATH is shown in Supplementary chart B below.
Supplementary Chart B
Finally, a relative chart of Russell 2000 vs. S&P 500 is helpful to examine these two major US equity indices and how IWM has performed YTD relative to the SPY / SPX. See Supplementary Chart C below. This relative chart shows IWM still in a downtrend relative to SPY. And it still shows that IWM vs. SPY remains below major resistance. Given that IWM is a leading index at times, it will be interesting to see whether what happens to the major resistance on this relative chart that was broken in early April 2023. Will it hold?
Supplementary Chart C
In summary, the small-cap stocks in the US equity market are lagging despite putting in a strong weekly performance this week of +3.33%. The primary trend in small caps remains sideways by any measure. Will IWM play catch up to the other main US indices like S&P 500 ( SP:SPX ) and Nasdaq 100 ( NASDAQ:NDX NASDAQ:QQQ )? No one knows for sure. But the liquidity problems plaguing the US economy tend to show up in the weakest names first, which usually are also the smallest names. Could IWM's underperformance be a sign of this liquidity stress? Or will it catch up to confirm that the current rally in NDX and SPY are perfectly healthy under the hood and headed to new all-time highs? Stay tuned.
And thanks for reading this and for your encouragement and support.
________________________________________
Author's Comment: Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate (respectfully presented) in the comment section. Shared charts are especially helpful to support any opposing or alternative view. This article is intended to present an unbiased, technical view of the security or tradable risk asset discussed.
Please note further that this technical-analysis viewpoint is short-term in nature. This is not a trade recommendation but a technical-analysis overview and commentary with levels to watch for the near term. This technical-analysis viewpoint could change at a moment's notice should price move beyond a level of invalidation. Further, proper risk-management techniques are vital to trading success. And countertrend or mean-reversion trading, e.g., trading a rally in a bear market, is lower probability and is tricky and challenging even for the most experienced traders.
DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified financial adviser or other investment / financial professional before entering any trade, investment or other transaction.
🔄 OP vs. TON: Similar Patterns🔄In the dynamic world of cryptocurrencies, every project charts its unique course. However, sometimes, two projects exhibit strikingly similar patterns. Such is the case with OP and TON, where their charts mirror each other within a large ascending triangle. Yet, beneath this surface similarity, the level of volatility introduces a fascinating twist.
Chart Patterns: Twins in Ascending Triangles
OP and TON, like twins in the crypto space, are both navigating a significant ascending triangle pattern. This pattern is indicative of bullish sentiment, showcasing an accumulation phase that often leads to upward breakouts.
Volatility Dynamics: Diverging Paths
While the charts may align, the volatility levels tell a diverging story. OP, with a 100% rise from its recent local low, demonstrates a steady climb. On the other hand, TON has surged by an impressive 200%, showcasing a higher level of volatility and potentially attracting more attention from traders.
Trading Strategy: Navigating the Twins' Paths
For traders, understanding and capitalizing on the nuanced differences in volatility is key. The steady rise of OP may be appealing for those seeking a more stable climb, while the higher volatility of TON could offer lucrative but riskier opportunities. Tailoring trading strategies to the unique characteristics of each asset is crucial.
Conclusion: A Duo in the Crypto Symphony
As OP and TON continue their journeys, the crypto community is presented with a unique duo. Their shared patterns create an interesting comparison point, while their individual volatility levels provide diversity in trading opportunities. Whether you're drawn to the steadiness of OP or enticed by the volatility of TON, the crypto symphony plays on.
🔄 OP vs. TON Analysis | 📈 Trading Twins | 💡 Investor Perspectives
❗See related ideas below❗
Have you ventured into the realms of OP and TON? Share your trading strategies in the comments! 💚📊💚
CRWD - Ready to bounce?CRWD - Ready to bounce?
Despite the steep decline in the general market that started in mid July, CRWD was actually trending higher, showing good relative strength. In fact,it is still trading above its 50 day MA while both SPX and NQ is now well below this MA.
There are a few signs that CRWD could be ready to bounce from it's recent correction that started on 19th Oct:
1. Bullish divergence between price and RSI on its daily chart
2. An Inside bar last Friday that could signal the near term correction could be ending
I will long as soon as it crosses above last Friday's candle (inside bar) high @ 175.70 with an initial stop loss about $1 below its recent low @ $170.
Disclaimer:
This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie trailing stop loss and position sizing) is (probably the most) important!
Take care and Good Luck!
