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Relative Strength Index (RSI)

EURUSD: RSI Bearish Divergence at a 0.786 RetraceEUROUSD is currently Overbought on the RSI and Diverging at a 0.786 Retrace just below Resistance; if it acts the way I suspect it will, we will see the Euro come back down to recover at least 50% of the range it's been in since around the start of the year and if we're really lucky, it will recover the full range. I do suspect that the Euro will come back up after making the 50-100% retrace to the lows, but in the meantime, it looks Bearish.
Short
by RizeSenpai
🔥 PEPE Oversold Bounce From Support: Great Upside!PEPE has been trading bullish alongside the dotted support line for around a week now. This trade is based on the idea that PEPE will once again bounce from said support. The idea of the bounce is reinforced by the fact that the RSI has hit oversold on the hourly chart, which has always caused a bounce in recent history. Target at 200, stop at 159 just below the support. It's a risky trade, but has very decent upside.
Long
by FieryTrading
17
🔥 CAKE Is Done Dumping? Amazing Risk-Reward Bounce PlayOver the last few months I've made several CAKE analyses where I discussed the massive dump that this token was experiencing. Like mentioned before, I think that CAKE as an asset is dead, but that doesn't mean it can't offer good trading opportunities. This trade is based on the assumption that CAKE will reverse sharply after the crazy April & May dump. I'm fairly certain that CAKE will never see a new all-time high again, but a 2x from here is certainly in the cards, especially with a bullish Bitcoin. I'm waiting for CAKE to close above the most recent high of 1.67, stop below the swing lows and a target of 3.50, roughly where the dump started.
Long
by FieryTrading
12
Gold Triple TopAnalyzing the monthly price chart, a significant pattern emerges - the Triple Top formation from 2020 till now. The Price Percentage Oscillator (PPO) and Traders' Dynamic Index (TDI) indicators further shed light on the situation. Here's my take on short-term and long-term price analysis and projection. The Triple Top pattern indicates three consecutive peaks at roughly the same price level, suggesting strong resistance. This suggests caution as it may signal a potential reversal or consolidation phase for Gold. The triple top pattern is a bearish reversal pattern that occurs when prices reach a high three times in a row, each time at a slightly lower level. This pattern suggests that the uptrend is losing momentum and that prices may be due for a correction. Looking at the PPO indicator, it shows a bearish divergence with the price, indicating weakening momentum. This supports the notion of a possible pullback or correction in the short term. The TDI indicator highlights a potential shift in market sentiment. The green RSI line has been in decline as price remained elevated and could imply a downtrend is forming. In the short term, given the Triple Top pattern and the bearish signals from PPO and TDI, Gold may experience a downward correction or consolidation phase. Support levels to watch include $1,700 and $1,600. In the long term, caution is warranted. If the Triple Top is confirmed, it may trigger a more significant trend reversal. Key support levels to monitor are $1,500 and $1,400, while resistance remains near $2,000. The short-term technical analysis suggests that gold prices may be due for a correction in the near future. However, the long-term technical analysis suggests that gold prices are still bullish and are expected to continue to rise in the years to come. Investors should consider taking profits in the short term and waiting for a better entry point in the long term. Please note that this analysis is based on technical factors and historical patterns, and it's essential to consider other factors and conduct further research before making investment decisions. Stay informed and adapt to changing market dynamics.
TVC:GOLDShort
by PrepForProfit
🔥 RDNT High Probability Oversold Bounce: Amazing Risk RewardRDNT is one of the newer tokens on Binance, which naturally makes it more volatile than others. This volatility is risky, but offers great opportunities when used correctly. As seen on the chart, RDNT has hit hourly oversold on the RSI on a strong support area, which directly caused a bounce. For an optimal risk-reward, I put the target at 0.40, but you can take partial profits at 0.315 in case you want less risk. Stop under the recent swing low.
Long
by FieryTrading
2
BTC Bearish ABCD Setting up to Drop Down Towards $16,741Recently, BTC has been showing promise to begin a macro breakout and run up to over $100,000, but even more recently on the lower timeframes, it's been giving off some bearish signs at a Bearish ABCD PCZ that we could actually go back down to around $16.75k from here before actually beginning the true run up towards the 6 digits. We have made three Consecutive Lower Highs on the RSI and are likely setting up for a Double Bearish Divergence on the MACD; if we come back down to test the levels of 16.7k, that would be the secondary test of the 1.618 Butterfly PCZ to which we could then more confidentially rise from.
INDEX:BTCUSDShort
by RizeSenpai
NIFTY FIN SER ANALYSISTrack nifty financial services sector closely. RSI is showing strength and want to go in the overbought zone I think. FIIs have infused in financial sector recently. If this moves above the supply zone marked on the chart with a closing weekly candle, Go long for the best financial services shares as large companies are the greatest contributers to the index. Disclaimer:- I am not a SEBI Reg. Analyst. Do your own research and analysis before investing or trading.
NSE:CNXFINANCE
by amolakchhatwal16
🔥 OMG Bear Market Bottom: Bullish DivergenceOMG has seen a very bullish week after 3 months of selling. BTC saw a break out and OMG followed. This analysis assumes that OMG has bottomed and will not see new lows in the future. This idea is supported by the fact that OMG lost over 97.5% of it's ATH value and is currently seeing a bullish divergence led reversal. Target at the all-time highs, around 20. Stop under this week's low. A less risky approach would be to put the SL below the 2023 lows and to take partial profits around 2.50 and 6.
OLong
by FieryTrading
3
BOIL / KOLD - a leveraged natural gas oscillatorHere on a dialy chart I have plotted the ratio of BOIL share price to that of KOLD, its leveraged inverse. They both react to and reflect natural gas prices which are currently rising. I have also plotted the supply demand indicator from Luxalgo and a better RSI indicator. As can be seen on the chart the ratio ascended from relative weakness last fall into a long head and shoulder pattern and then descended into its present range. The RSI bottomed abot 5/4/23 and increasing since then. I see the present pattern as similar to what occurred last fall. My thesis is that I should buy BOIL now as its price ascends until the ratio hits the supply zone above and then flip by selling and buying KOLD instead. I see this as essentially a natural gas buy and sell oscillator. To have more frequent trades and higher overall profits, I would need to decrease the timeframe for the analysis down to 1-3 hours and follow the ratio trending accordingly. At present, I will continue to accumulate further long positions in BOIL
AMEX:BOILLong
by AwesomeAvani
23
Is SOFI a buy or a sell?SOFi in the past month as shown on the 4H chart has run up more than 80% and now appears to be in a standard 50% Fibonacci retracement. Price has descended from two standard deviations above the mean VWAP to a single deviation after a Doji reversal candle on June 14th. The reversal was also marked by the RSI and the signal lines crossing at a reading of 93 and then descending. The price volume trend indicator went from green for increasing to a flat line and then red for decreasing. Overall, I believe that SOFI has nearly completed a retracement. I will watch for RSI to rise above 20 and the PVT to transition from red to green and the candles themselves for a bullish candle pattern or formation in order to ascertain an optimal long entry. I will do this on a 5 or 15 minute time frame chart to make the best assessment of that entry. My first target is $ 10.20 or just under the pivot high while the second target is $13.00 just under a support area a year ago on the weekly chart. Fundamentally, I believe that the reactivation of student loan repayments will have dramatic effects on SOFI's earnings.
NASDAQ:SOFILong
by AwesomeAvani
12
🔥 CFX Oversold Bounce Trade: Following BTC Up!CFX has been one of the bigger winners of 2023. However, this token has been largely trading bearish ever since it topped late March. As of recently, CFX has hit daily oversold on the RSI for the first time in many months, likely causing some kind of reversal. Now that BTC is breaking out, I'm anticipating that CFX will see more gains in the near future. Target is the 2023 high, stop under this daily candle. A less risky trade would be a stop under the June 9th lows and/or a (partial) target of 0.3
Long
by FieryTrading
1
Bitcoin Rolling MACD CrossOver in Five PhasesHello dear community! Let's explore the relationship between the MACD and Bitcoin price action on the Weekly time-frame and draw conclusions based on historical data. Phases 1 - 5 in 2018 - 2020 Upon analyzing the MACD window, we can discern distinct phases characterized by downward crossovers in the moving average (MA). Commencing from 2018, Phase 1 began with the first downward crossover on 22nd January 2018. In Phase 2, the second downward crossover materialized on 30th July 2018. Moving to Phase 3, the third downward crossover occurred on 12th November 2018. Transitioning to Phase 4, the fourth downward crossover took place on 19th August 2019. By analyzing the first and fourth downward crossovers, we can establish a trendline that was subsequently breached when the bull market emerged. Phases 1 - 5 in 2021 - 2024 Phase 1, the subsequent market phase, commenced shortly after the MACD reached a new all-time high around 19th April 2021. In Phase 2, the second downward crossover occurred on 29th November 2021. Following that, in Phase 3, the third downward crossover took place on 18th April 2022. Similar to the consolidation observed in 2019, a period of pause was experienced. Finally, in Phase 4, the fourth downward crossover occurred on 29th May 2023. It is important to note that the fifth phase is yet to be witnessed, as we await the occurrence of the fifth downward crossover in 2024. Can we utilize this data to gain insights into the potential future movement of Bitcoin? It is often observed that history repeats itself in financial markets, albeit with some variations in volatility. Therefore, based on the MACD study, we can glean a clue regarding how the price might behave during Phase 4, which suggests a downward movement. Furthermore, let's briefly examine the RSI indicator. In Phase 4 of 2019, the RSI consolidated within a downward channel, and upon observing the current state in 2023, it appears that the RSI is exhibiting a similar pattern.
BITSTAMP:BTCUSD
by Vestinda
Enhance Your Trading Strategy with MACD and RSI ConvergenceIntroduction: Welcome, fellow traders! Today, I'm excited to present a step-by-step tutorial on how to enhance your trading strategy using a combination of two powerful technical indicators: Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) . Section 1: Understanding MACD and RSI - Exploring the Components MACD: The MACD consists of three components: MACD line : Represents the difference between two moving averages, typically the 12-day and 26-day exponential moving averages. Signal line : A 9-day exponential moving average of the MACD line. Histogram : Displays the difference between the MACD line and the signal line, providing visual cues about the momentum of the price movement. RSI: The RSI is an oscillator that measures the strength and speed of price movements on a scale from 0 to 100. Readings above 70 indicate overbought conditions, suggesting a potential price reversal. Readings below 30 indicate oversold conditions, suggesting a potential price bounce. Divergence between price and RSI can be a signal of a trend reversal. Section 2: The Idea Behind the Strategy - Combining MACD and RSI By aligning the signals of MACD and RSI , we aim to increase the reliability of our trading decisions. When both indicators provide signals in the same direction, it enhances the probability of a successful trade. The convergence of MACD and RSI helps filter out false signals and focus on high-probability trade setups. Section 3: Implementing the Strategy - Identifying Bullish and Bearish Signals Look for a bullish crossover: MACD line crossing above the signal line , indicating upward momentum. Confirm the bullish signal: Ensure the RSI reading is above a specific threshold, such as 50, indicating strength in the upward move. Consider additional confirming indicators, such as positive divergence or breakouts from key resistance levels. Identifying Bearish Signals: Identify a bearish crossover: MACD line crossing below the signal line , indicating downward momentum. Confirm the bearish signal: Ensure the RSI reading is below a specific threshold, such as 50, indicating weakness in the downward move. Consider additional confirming indicators, such as negative divergence or breakdowns from key support levels. Section 4: Backtesting and Refinement - Improving Performance and Accuracy The Importance of Backtesting: Gather historical price data for the desired trading instrument and timeframe. Apply the MACD and RSI convergence strategy to the historical data. Analyze the performance of the strategy, considering factors such as win rate, average gain/loss, and maximum drawdown. Adjust the threshold levels, timeframe, or other parameters to improve the strategy's performance. Refining the Strategy: Consider incorporating additional technical indicators, such as trend lines, Fibonacci levels, or volume analysis, to further confirm trade signals. Evaluate the strategy's performance across different timeframes and trading instruments to identify its strengths and weaknesses. Continuously monitor and adapt the strategy to changing market conditions and refine it based on your trading style and preferences. Section 5: Risk Management and Trade Execution Effective Risk Management: Determine appropriate position sizes based on your risk tolerance and account balance. Set stop-loss orders to limit potential losses if the trade goes against you. Establish profit targets to secure gains and exit the trade when the desired level is reached. Regularly review and adjust risk management parameters as needed. Conclusion: Congratulations! You've completed the tutorial on leveraging MACD and RSI convergence to enhance your trading strategy. By combining these powerful indicators, you now have a valuable tool in your trading arsenal. Remember to practice in a demo environment (aka. Paper Trading) before applying the strategy with real funds, and always adapt it to the evolving market conditions. Feel free to share your progress, ask questions, and discuss your experiences in the comments section. Let's learn from each other and continue refining this strategy together. Best of luck on your trading journey! Note: Trading involves risks, and this tutorial is for educational purposes only. Always conduct your own research, seek professional advice, and practice responsible risk management.
BEducation
by LuminoAlgo
6