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Relativestrength

Educational (divergence + volume)Hi guys, in order to spot a divergence you should be careful which timeframe you're looking at. for example in the left picture, the daily timeframe is showing higher highs in price (at each candle) and lower highs in RSI (at each candle). but note that these are not highs and lows and as long as you can't find signs of accumulation and distribution in highs and lows (as long as there's no valid consolidation) you can't name them as highs and lows. so there's no divergence. but in the lower time frame (what is shown is 4h) you can see it more clearer that for every candle in the daily time frame, you have a specific trend in the 4H timeframe. so you can name them as highs and lows and yes, there is a divergence now. also, keep in mind that in the lower timeframe. every time you're making a new high in rsi, you should expect it to be more volatile and be more sensitive in a way that in the next new rsi high, you have less time spent in the overbought area. The next part is about the volume profile. you have less resistance in front of the price movement where there is less volume traded in the past. BUT NOT ALWAYS! less trades made in the past in an area means two things: 1- you can expect the price to move faster and sharper and take less time in that area 2- if the price wants to make a low or high or a pattern, it's less predictable and there's more chance of wrong analysis and fake patterns. Feel free to leave any comments and ask questions!
Education
by Finnovin
Cant wait for price to stop ranging? Do thisFirst of all you are going to need this indicator Its the Heiken Ashi Algo Oscillator. Click the image below There are times when price is ranging. When this happens you simply need to see what is the channel where the RSI values are hitting and you want to know WHEN is the RSI breaking out of that channel In this oscillator the HIGH and LOW part of the RSI Range is the +10 and -10 If price is ranging in between as it is consolidating you dont want to sit there for several hours. So in this video you can see how to set an alert telling you when the RSI breaks out of the RANGE. This way, once the alert is set, you can go live life......... See you next time at the CoffeeShop
Education
by CoffeeshopCrypto
2
EURUSD & DXY: A BEAUTIFUL INVERSE RELATIONSHIP / FIAT / FIBDESCRIPTION: In the chart above I have included a MACRO analysis & side by side comparison of EURUSD & DXY. POINTS: 1. DEVIATION of 0.075, found with HIGHEST HIGH & LOWEST LOW & then dividing by 2 to find a MEDIAN & so on for remaining points in between. 2. EURUSD price action is in a current downtrend getting ready to test 1ST TARGET. 3. NOTICE how TARGETS for DXY & EUROUSD coincide. 4. RSI is currently over extended for EUROUSD & has seen its squeeze from previous oversold levels. *IMPORTANT: When both price actions come to touch they either float in same channel before separating again or completely blow through one another. SCENARIO: With DXY's current bearish momentum this can be a bullish factor for EURUSD as they have a clear inverse behavior and vice versa. FULL CHART LINK : www.tradingview.com FOREXCOM:EURUSD TVC:DXY
by DGSTBROKERACC
BTC Bottom Finder with RSI 📉Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 I'll be exploring a few scenarios for a potential Bitcoin bottom. In today's analysis, I make a use of Technical Indicator the RSI (relative strength index) over a long period of time, in other words a macro view. For more data that goes back further, I'm using BTCUSD instead of BTCUSDT. The RSI is trading in the historic oversold zone, but as we can see during the bottom of end 2014- beginning 2015, another leg down into the oversold zone is possible before continuing back upwards. This is indeed the scenario that I would be expecting, considering we have already tested this zone once but with talks of a global recession in 2023, we could see another leg down to support zone $11K before the final accumulation phase ends. I am by NO MEANS predicting the bottom date; just a simple overview that BTC is generally accumulated at a good price around this zone. Keep your eye on these 4 altcoins that have great upside potential during 2023, possibly even during a bear market as they are prone to pump and dump untimely 👀 XLM and DOT XRP and LTC _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
BITSTAMP:BTCUSD
by CryptoCheck-
32
Early entry in small cap health services, $MEDPSince late 2021 NASDAQ:MEDP is being forming a head & shoulders base with pivot buy above $230. This is the beahvior of a potential leader. It shows when comparing it against the AMEX:IWO as is still in a downtrend. The play for me would be to buy 1/2 or 1/3 of a position just above yesterday's high with a STOP-LOSS below $196. And then add at the $230 pivot. Medpace Holdings is ranked #1 in its industry by IBD. I recomend to also check NYSE:VPG which is also setting up. Its being hard for small caps to get demand as the indices are still in downtrends making the sentiment stay bearish. But as JC Parets always likes to remember, "is a market of stocks, not a stock market".
NASDAQ:MEDPLong
by dpuleo19
DAX40 Break out or fake out?Gm Today we opened DAX,with a gap which has been closed few hours later, and now we’re looking at price action near psychological level - 14 000. Bullish: (Higher low and support at point of control? ~13885?) In this moment I’m checking if price action forming triangle pattern and if it could break out and boost price from current level to ~14160 and even ~14220 where for me is a key level resistance point at this moment. Relative strength index line tested SMA from above and it’s going upward direction, but i have attention to lower times frames which do not give me right signs (RSI should cross SMA -15m/30m, bearish engulfing bar at 15m wasn't right sign.) Still waiting for more bullish confirmations in short term on price action. Bearish: In the other hand we have price action rejected at 0.618 fibonacci level and if this a local triangle formation it could get back to 13870 where was prominent demand, and as we can assume – double bottom with a candle weak confirming value area low. We are still under moving average ribbon and momentum still pressure for downward. Short term: Lower than 0.381 fibo → price going down 13 880/ 13 800 Higher than 0.618 fibo → going up 14 150/ 14 300 My prediction for now is mostly downward. But first I’ll wait to see what happens at drawed white triangle edge line. Then what will have place at 13 880 and 13 800 price levels. Anyway I don’t expect to price go higher than 200 moving average at 1h timeframe.
XETR:DAX
by NightTerm
Relative Strength IndexThe Relative Strength Index is one of the most widely used tools in traders handset. The RSI is an oscillating indicator which shows when an asset might be overbought or oversold by comparing the magnitude of the assets recent gains to its recent losses. A common misconception is that the RSI draws a comparison between one security and another, but what it actually does is to measure the assets strength relative to its own price history, not that of the market. The Relative Strength Index is useful for generating signals to time entry and exit points by determining when a trend might be coming to an end or a new trend may be forming. It weighs the prices upward versus downward momentum over a certain period of time, most often 14 periods, thus showing if the asset has moved unsustainably high or low. The RSI is visualized with a single line and is bound in a range between 1 and 100, with the level of 50 being considered as a key point distinguishing an uptrend from a downtrend. You can see how the RSI is plotted on a chart on the following screenshot. J. Welles Wilder, the inventor of the Relative Strength Index, has determined also two other fundamental points of interest. He considered that an RSI above 70 indicates that the asset is overbought, while an RSI below 30 suggests an oversold situation. These levels however are not strictly set and can be manually switched, according to each traders unique trading system. Trading platforms allow you to choose any other value as overbought/oversold boundary apart from the conventional levels. How is RSI calculated? The formula is as follows: RSI = 100 – Where the RS (Relative Strength) is the division between the upward movement and the downward movement, which means that: RS = UPS / DOWNS UPS = (Sum of gains over N periods) / N DOWNS = (Sum of losses over N periods) / N As for the period used for tracking back data, Wilders original calculations included a 14-day period, which continues to be used most often even today. It however can also be a subject to change, according to each traders unique preferences. After the estimation of the first period (in our case the default 14 days), further calculations must be made in order to determine the RSI after a new closing price has occurred. This includes one of two possible averaging methods – Wilders initial and still most commonly used exponential averaging method, or a simple averaging method. We will stick to the most popular approach and use exponential smoothing. The UPS and DOWNS for a 14-day period will then look like this: UPSday n = / 14 DOWNSday n = / 14 What does the RSI tell us? here are several signals that the Relative Strength Indexs movement generates. As we said earlier, this indicator is used to determine what kind of trend we have and when it might come to an end. If the RSI moves above 50, it indicates that more market players are buying the asset than selling, thus pushing the price up. When movement crosses below 50, it suggests the opposite – more traders are selling rather than buying and the price decreases. You can see an example of an uptrend below where the RSI remains above 50 for almost the duration of the move. However, do keep in mind to use the RSI as a trend-confirmation tool, rather than just determining the trend direction all by itself. If your analysis is showing that a new trend is forming, you should check the RSI to receive additional confidence in the current market movement – if RSI is rising above 50, then you have a confirmation at hand. Logically, a downtrend has the opposite properties. Overbought and oversold levels Although trend confirmation is an important feature, the most closely watched moment is when the RSI reaches the overbought and oversold levels. They show whether a price movement has been overdone or it is sustainable, thus, indicating if a price reversal is likely or if the market should at least turn sideways and see some correction. The overbought condition suggests a high probability that there are insufficient buyers on the market to push the asset further up, thus leading to a stall in price movement. The reverse, oversold, level indicates that there are not enough sellers left on the market to further push prices lower. This means that when the RSI hits the overbought area (in our case 70 and above), it is very likely that price movement will decelerate and, maybe, reverse downward. Such a situation is pictured on the screenshot below. You can see two rebounds from the overbought level with the first move being extraordinary strong and bound to end with a price reversal, or a correction at least. . Having noted that prices tend to rebound from overbought/oversold levels, we can therefore reach the conclusion that they tend to act as support/resistance zones. This means that we can use those levels to generate entry and exit points for our trading session. As soon as the price hits one of the two extremes, we can use the Relative Strength Index to confirm a probable price reversal and enter an opposite position, hoping that prices will reverse in our favor. We can then set the opposite extreme level as a profit target.
Education
by FOREXN1
27
JNJ Buy Long on StrengthJNJ fundamentally is a cross between Big Pharm and Consumer Staples Recent Earnings were solid not spectacular but the latter is not expected here. Technically, JNJ climbs higher without much volatility, At the moment it is rising in a small cycle within the supertrend. Strength is increasing and some bearish momentum is exhausting. This is a low-beta stock and it does not react much to the larger broad market. I see this as a good time for a LEAP option for early 2024 at a strike 15% above the current price.
NYSE:JNJLong
by AwesomeAvani
$TSLA call trade idea updateThe trade idea I presented in my previous Tesla post (linked) did not work because price went lower on Thursday and pulled RSI down below 35 (orange rectangle). My initial idea on 16 Nov. was for RSI to move higher from 35 as price rose. Instead RSI fell and stayed below 40 for two days (remember this is a 30m frame), until the green candle in the final Friday hour. After two days of very little price movement, which is quite unusual for this stock, stochastic %K(10) gave a sign of strength (yellow arrow) in the final hour Friday. Yellow box marks 2-3 candles that create the stochastic spike Notice the candles in Friday's box seem insignificant, except for a higher close, yet %K shows the strength. To the left, there is a yellow arrow marking a %K spike that matches with a very bullish candle. Price continued to gradually rise over the next four days. However looking at RSI below 30 on 9 Nov, I expected it to stall under 65 for a reversal. Now price has returned to make new lows but closed above 180, which is a good sign. Along with the %K spike on Friday, RSI moved over 40 but has yet to cross into bullish territory. I am looking for a candle close over the downtrend line, ideally early Monday, that pulls RSI over 50. If Friday's %K stochastic sign is supported by further buying, then RSI should, Mon-Tues, move over 67 and stay over 50. If price spends time struggling under 180 during the first half of Monday or quickly makes a new low, then this trade design is completely negated and I may look for puts down to 160.
NASDAQ:TSLALong
by OptionsRising
39
QQQ / NDX - more upside in near termQQQ broke above a minor neckline @ 284.50 last Friday and looks set to head higher in the coming days towards the 200 day moving average cum trendline resistence around 308-313. The odds of QQQ (NDX) reaching this level has increased as it is now taking the lead among the 3 indices (namely DJI, SPX and NDX). This means traders are now in "Risk-On" mode and piling into the more "speculative" sectors (namely Techs). However, the bigger picture is still in a downtrend and we do not know if the bottom is already in (until on hindsight!). Market could also go into weeks/months of sideways consolidation (just to please the FED lol). In general, mass layoffs by big companies could be a hint that the worst is over (esp for the stock concerned). However, we are also in a tricky situation that an aggressive market recovery might not bode well for inflation. Hence, anything is still possible at this point, waiting for clearer TA signs especially from the big Techs (FAANG). Meanwhile a lot of smaller stocks have already turned the corner. Hence, I'll be flexible. Disclaimer: Just my 2 cents and 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 is important! Take care and Good Luck!
NASDAQ:QQQLong
by Juliac
5
GLAND PHARMA, TOUCHED ITS IPO PRICE!!after its recent quarterly results it fell a lot. its a very good stock for the swing trade. i have mentioned its targets and they are good support for those earlier a month ago, i had posted its 5 waves. and this time i have extended it till its IPO PRICE. its a bit sad, that it came down this low. but its good to buy in dip. i am aiming for the targets mentioned. do check he trend line drawn in RSI indicator too. the stock has touched its bottom, and one can do momentum investing till the stock consolidates in the future.
NSE:GLANDLong
by raghavchoudhary2016
AIT - Buy the dipsAIT first gapped strongly of a long term sideway consolidatin on 11 Aug (earnngs beat) but soon gave back all the gains as it started another round of consolidation (this time forming a rounded bottom). It is not uncommon to see "false/failed breakup" especially during periods of uncertainties in overall market. What is important is to note the "relative strength" of the stock in comparison to the index. The cup consolidation was forming with a higher low (on weekly) while S&P500 was making new lows, not to mention that AIT is also well above it's 200day Moving Average, showing good relative strength to the market. AIT finally broke out of a cup consolidation last Friday, probably in anticipation of earnings that is expected out on 3 Nov. There is a chance that the stock could continue to go higher with it's new support @140, or, it could once again attempt another smaller pullback, this time to form the "handle" of the cup that was formed. I would put initial stop loss just below 136. Let's see what happens. Disclaimer: Just my 2 cents and 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 is important! Take care and Good Luck!
NYSE:AITLong
by Juliac
Dow Jones Industrial Average relative strength on the riseThe overall US equity market is still having a hard time stabilizing and catching its footing, however, if we examine the major US indices closer we do notice more and more relative strength coming out of the Dow Jones Industrial Average. This past week it never took out its September lows, the MACD momentum oscillator continues to climb aggressively, and on Friday we remained in the top 1/3 of Thursday's bullish engulfing bar. I started a position on Thursday and will keep a tight leash risk managing it going forward. More notes on the chart.
AMEX:DIALong
by EvanMedeiros
Is Huobi Token Megaphone Pattern Bullish or Bearish?Over the past 3.5 months, Huobi Token (HT) has been developing a megaphone pattern, also known as the broadening pattern. The pattern is neither bullish nor bearish, but it hints at a period of heightened volatility as long as HT's price remains trapped inside the megaphone support and resistance levels. HT Megaphone Pattern The megaphone pattern can be recognized by successive higher highs and lower lows. On the price chart, this pattern is visible by two diverging trendlines. Usually, the pattern marks a period of high volatility with no clear market direction. HT's price is testing the upper resistance trendline of the megaphone pattern around the $7.10 level. RSI Oscillator After the recent sharp rally, HT's price is greatly overbought. The Relative Strength Index (RSI) has reached 84, its highest reading since February 2021. Fears of the rally losing momentum are justified, as other technical factors are calling for a pause. Aside from extreme overbought levels, HT's price is also battling the key 200-day simple moving average. 200-Day Simple Moving Average While we broke above the 200-day simple moving average, it remains to be seen how this will play out within the megaphone pattern. For a fundamental shift in the market sentiment, we need multiple daily closes above the 200-day SMA. The current daily candle already shows signs of rejection at the megaphone resistance trendline, which may be another sign that, in the short term, the bullish momentum is running out of steam. Looking forward: To the downside, the first support area is the $5.00 big psychological level. A daily break and close below $5.00 will eventually open the door for a retest of the lower support trendline.
H
by cryptohopper
2
Elrond Bullish RSI Divergence Calls For at Least $10 RallyElrond (EGLD) has printed a bullish RSI divergence that supports more upside, at least until the next resistance around the $63 level is retested again. Additionally, Elrond is showing relative strength compared to the overall cryptocurrency market. These two technical factors combined offer a short-term bullish outlook for the Elrond price. Bullish RSI Divergence A strong bullish divergence between EGLD and the Relative Strength Index (RSI) oscillator was observed at the bottom of the current range near the $47 support level. The rally that emerged afterward doesn't seem to be running out of steam. Moreover, the price has developed the bullish RSI divergence in multiple time frames, indicating a potential bigger bounce. The path of least resistance is to the upside, as there are no clear resistance levels until the area between $63 and $65. EGLD Relative Strength Another divergence between the EGLD price and the Altcoin Index shows that Elrond is stronger than the overall crypto market. While EGLD's price broke above the mid-September high, printing a higher high, the Altcoin index continues to trade below its mid-September high. The divergence between EGLD and the Altcoin index may be just a short-term anomaly. Because we're still trading within a bearish cycle, this may be just a pullback, and sooner or later, EGLD could align back with the overall market direction.
by cryptohopper
1
ETSY - Worst is probably behind usETSY is now trading way above it's June's low, which means it has good relative strength compared with the S&P500. Even so, it could still be volatile, having 61.8% since hitting a swing high (B) on 16 Aug. It has been trading in a downward channel (extended "flag") for the past 6 weeks and it looks like an eventual break above this "flag" cold be near . When it does (break up), it will be further validation that this stock is on it's way to recovery. Then again, we just never know if FED will come in again to pull the brakes. Hence , be optimistic but also realistic and have a stop loss in place. Disclaimer: Just my 2 cents and 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 is important! Take care and Good Luck!
NASDAQ:ETSYLong
by Juliac
Could BTC's Trendline End Not with a Bang But a Whimper?Primary Chart: Fibonacci Channel and Symmetrical Triangle Title alludes to a well-known excerpt from T.S. Elliot's poem called "The Hollow Men": This is the way the world ends This is the way the world ends This is the way the world ends Not with a bang but a whimper. Setting Aside Bias Temporarily to Allow Greater Flexibility in Analysis Many of my recent posts on cryptocurrencies have been presented with a bearish bias. A bearish view has been warranted, after all, because the technicals have left almost no room for a bullish short-term or intermediate-term view. Some of my recent posts have been neutral, however, to evaluate and explore more fully all possibilities within the context of support and resistance levels, price action and other technical factors. Unfortunately, BTC's price chart has not yet turned bullish given the price structure. And positive / bullish divergences mentioned by some long-term crypto investors cannot count until they are confirmed by a reversal in trend structure. This post attempts to set aside bias temporarily to present a variety of technical evidence as objectively as possible. The goal is to remain relatively neutral to allow a more complete examination of the price charts and technicals without the influence of a particular predetermined goal or conclusion. This might allow for greater flexibility to follow the unexpected turns that prices often take. BTC's Relative Strength in Recent Weeks In a recent bearish post, after listing several arguments for the bears, I discussed one argument for the bulls—BTC's relative strength. On October 2, 2022, my post stated: "One argument for the bulls is that BTC's sideways chop action has resulted in its relative strength becoming quite impressive. Equity indices have been plummeting sharply since mid-August 2022 with little reprieve. But BTC during this time has largely chopped sideways after losing a few key levels in late August and early September 2022." This relative strength can be examined more closely by looking at a spread chart that divides one instrument's price by the price of an index or some other price reference for comparison. The chart below shows a spread (or ratio) chart of BTC / SPX, showing BTC's relative strength compared to a leading equity index, the S&P 500 ( SP:SPX ). Supplementary Chart A: Spread Chart Showing BTC's Relative Strength vs. SPX www.tradingview.com Note how this spread chart has broken above a nearly 11-month downward trendline. Some may draw the conclusion too quickly that this suggests a trend reversal, such as from a downtrend to an uptrend. But a break above a down trendline by itself merely suggests a shift from that particular downtrend to either a less steep downtrend or a more neutral trend, which could then lead to a period of sideways chop for some time or it could lead to a trend reversal as well. But a reversal to an uptrend requires a change in trend structure, which is a process that takes time to form and has not occurred yet. Another aspect of BTC's relative strength exists. It has not broken its June 2022 lows as many equities and equity indices have done. Until that changes—it could break those lows at any time—this technical evidence is an alternative way of viewing BTC's relative strength. BTC's relative strength has improved even though BTC has largely churned and chopped sideways for the past weeks and months. This is because many asset classes have been steadily declining, some even plummeting, since mid-August 2022 peaks. Any asset or instrument will have relative strength when it moves sideways while equity indices continue to decline. The sideways consolidation will be discussed in greater detail in the next section. BTC's Recent Consolidation and Volatility Compression BTC's price has chopped steadily around a key Fibonacci level of $19,246 for the past several weeks since mid-September 2022, and even for a number of days in late August 2022 as well. This consolidation has been noteworthy given that equity indices have plummeted during this time. When an asset moves sideways while equity indices steadily decline results in relative strength (outperformance) of that asset as discussed in the previous section. Supplementary Chart B: Recent Consolidation Range Containing Price And during this lengthy consolidation, the compression in volatility has been quite significant. The next chart compares the levels of volatility by using a famous volatility indicator called the Bollinger Bands (set at 2 standard deviations from the mean) on a daily chart. Parallel channels have been drawn over various sections of the Bollinger Bands to give a visual comparison of the volatility levels and volatility compression levels over the past several months. Note how wide the Bollinger Bands expanded as a result of the high volatility associated with steep selloffs. And the periods of volatility compression (squeezes) often preceded those periods of high volatility and large directional moves downward. Supplementary Chart C: Bollinger Bands (2 Standard Devations) with Channels for Visual Aid in Comparing Volatility Levels Most importantly, note how the tightly compressed the current volatility in price has become, i.e., note how narrow, the Bollinger Bands are now. They are more narrow perhaps than at any other time during this bear market. If history is any guide, such a period of compressed volatility (a squeeze) implies that a sizeable increase in volatility associated with a large directional move will soon follow. Because the trend has been down, the odds would seem to favor a downward flush. But BTC's relative strength causes one to wonder whether a massive bear rally may be imminent. So traders should be prepared for any scenario where price could move dramatically. This is why my stance became more neutral for purposes of a thorough evaluation of price action. Because BTC is at a make-or break juncture in the short-to-intermediate term, it helps to stay open to all possibilities rather than staying rigidly fixated on the obvious bearish view. Being flexible and nimble can help traders remain more keenly aware and prepared for shifts that can occur at any time. VWAPs and Linear Regression Channel Even if the charts may be shifting in subtle ways, some of the technical evidence still firmly supports the existence of a downtrend. Shorter-term VWAPs \ show that the current price remains under the volume-weighted average price for a variety of different lookback periods. This means that the average buyer is losing money and the average seller remains in control for each of these VWAP periods. Supplementary Chart D: Various VWAPs from All-Time High, March 2022 High, June 2022 / YTD Low, and August 2022 High Further, longer-term VWAPs remain in favor of the bears as shown in a separate post from September 24, 2022 (linked as Supplementary Chart E below). The linear regression channel from the all-time high to the present, which was drawn a few days ago (also linked as Supplementary Chart E), suggests that the downtrend remains very much in effect, and that evidence should not be dismissed. Supplementary Chart E: Linear Regression Channel and Long-Term VWAPs Price at Apex of Various Consolidation Triangles The consolidation in price may be viewed from another helpful perspective—the various triangles that have formed. Triangles generally develop as a narrowing trading range (consolidation) as upper and lower trendlines converge under compressing volatility conditions. The Primary Chart shows a symmetrical triangle, which by definition does not imply a direction to the breakout. Price has reached the very apex of this triangle. Price has also reached the apex of two other right-angled triangles shown below. Right-angled triangles (also called descending or ascending triangles) do imply a directional bias via the sloping trendline that intersects with the horizontal trendline. In this case, the two alternative right-angled triangles (shown in Supplementary Chart F below) imply a downward directional breakout. But right-angled triangles, like other technical patterns and indicators, do not work perfectly to guarantee that the breakout will occur in the implied direction. Some right-angled triangle breakouts occur in a direction opposite from what is expected, which can make the breakout even more sharp because it catches market participants off guard. Supplementary Chart F: Multi-Month Right-Angled Triangle Supplementary Chart G: Second Right-Angled Triangle BTC's Price at Critical Juncture In conclusion, BTC's price now trades at a critical juncture. A breakout in price from the very apex of several different triangles could occur within a day or two. The compression in volatility has been quite substantial, implying a larger than normal directional breakout move. Combine this compression in volatility with the fact that BTC has not made a new low, has shown relative strength vs. blue-chip indices, and it would seem that traders should be prepared to react to whatever might happen. Price has also reached the 11-month downtrend line shown on the Primary Chart as the zero line of the Fibonacci Channel. Price could continue chopping sideways right through that down trendline without much ado. That would perhaps be one of the most frustrating outcomes for bulls and bears alike, which is why the title to this article was chosen. And at this point, it would appear that just about anything can happen—an eye-popping bear rally, a few major whipsaws up and down over the next several weeks, a major continuation move in the downtrend. Or price could just drift sideways through the 11-month downtrend line, ending it not with a bang, but a whimper. While predicting may feel satisfying, the better approach in this case may be to wait and allow price to tell us which way it wants to go. ________________________________________ Author's Comments: (1) Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate in the comment section. Shared charts are especially helpful to support any opposing or alternative view. (2) This technical-analysis view does not constitute a trade recommendation or trade setup. Instead, it attempts to offer technical commentary that describes and analyzes price levels, trends, price action, or the broader technical environment as of the publication date. Technical-analysis commentary does not equate to trade setups or recommendations. Within a given price environment, traders bear responsibility for their own trading strategy, risk tolerance, and time frame, and for any due diligence associated with such trades. (3) This technical-analysis viewpoint could change at a moment's notice, e.g., when price violates a key level of invalidation for a particular view. Further, proper risk-management techniques are vital to trading success. (4) To the extent countertrend price moves are discussed, consider that countertrend or mean-reversion trading, e.g., trading a rally in a bear market, remains higher risk and lower probability even for the most experienced traders and investors. 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 / licensed financial adviser or other financial or investment professional before entering any trade, investment or other transaction.
BITSTAMP:BTCUSD
by SquishTrade
9
The RSI Formula Explained. Catch the move from end to end. Welcome to the copy shop everybody and let me bid you a hello from the back of the baristo bar. This video is very casual, unscripted, and yet extremely informative. First off let me make sure you have your copy of this script "The Heiken Ashi Algo Oscillator" I'm hoping to use this particular video so that you guys can come back into the comments area and specifically ask questions about how this works because I want to give you this information. But most importantly I want you to understand it. In today's video I'm going to be discussing the "RSI formula". So today's video is called the RSI formula, explained. I've noticed over the years that every time they RSI has a particular reading, You can calculate that into a ratio that will tell you what should be your risk and what should be your reward. This allows you to set your stop loss and your take profit and literally walk away and not have to worry about it. I do not expect you to understand this formula watching it just one time so you will need to play this over and over again without question. But if in the moment that you do have questions go ahead and leave them below. What I want you to do is if you feel like you're getting it wrong, tell me what the RSI reading is that you got and I'll tell you what it's supposed to convert to and I'll tell you how to convert it to that number. Telling you the formula won't help you as much as it will showing you how it works against your readings so by all means leave your questions below.
Education
by CoffeeshopCrypto
7