Hidden bullish divergence on #BTCin 2019 we had a similar situation unfold out of the bear market lows
are we repeating a similar situation
#RSI is showing lower lows along with a higher low on price
Interesting how history rhymes :)
Relative Strength Index (RSI)
Lazyluchi Talks Relative Strength IndexNow I've been TRADING trend continuation for 180 days now and I had something come to me on WEDNESDAY. The market being in an over bought or sold situation can affect our TRADES. I'll be making use of the RSI to aid my setups (that is: where my SLs and TPs even entries will be). Here are rules that can guide you after watching the video.
RULES OF THE RSI
1. Above 50% is BULLISH
Below is BEARISH
2. When taking TRADES be sure to know where the 50% is.
3. Don't TRADE counter
4. Know thy 20% and 80%
5. Always draw three lines (80,50, and 20) Then know the dominating structure, and take that TRADE
6. In an UPTREND, know thy 20 and 50 (wait for it to break above the 50 to BUY)
7. In a DOWNTREND, know they 80 and 50 wait for it to break below to SELL)
8. STRATEGY: trend following with breakouts
9. The RSI helps to avoid overbought and sold situations
Some abbreviations I'll be using would all make sense when I start. I'll be labelling the 80%,50% and 20% levels. 80 and 50 for the BEARS, 20 and 50 for the BULLS. The DIVERGENCE and STRUCTURES will still be in the works. Stay tuned for them RSI trades. Enjoy!
NY: EUR/JPY BOBBI - MOMENTUMTaking a quick market execution long on EJ following a break of our RSI moving average with confidence that EUR is showing strength and JPY weakness across the board. Used our playbook setup "BOBBI" (Break Out Break Back In) with momentum as our entry criteria. Asia and London have treated us well, lets see what NY has in store
How to Trade With Relative Strength Index (RSI) Indicator
Hey traders,
Relative strength index is a classic technical indicator.
It is frequently applied to spot a market reversal.
RSI divergence is considered to be a quite reliable signal of a coming trend violation and change.
Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tips:
💠First of all, let's start with the settings.
For the input, we will take 7/close.
For the levels, we will take 80/20.
Then about the preconditions:
1️⃣ Firstly, the market must trade in a trend ( bullish or bearish )
with a sequence of lower lows / lower highs ( bearish trend ) or higher highs / higher lows ( bullish trend ).
2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows.
3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead.
➡️ Once all these conditions are met, you spotted RSI Divergence.
A strong counter-trend movement will be expected.
Also, I should say something about a time frame selection.
Personally, I prefer to apply it on a daily time frame, however, I know that scalpers apply divergence on intraday time frames as well.
❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal.
Let me know, traders, what do you want to learn in the next educational post?
CSIXUSDT IDEAtrend
the pair is trading in range in most time frames (Daily Chart, 4,1 HOUR Time frames )
technical analysis
if you looking at this chart you will notice that its trading near its resistance, if you were to draw a Fibonacci retracemt n the chart you will see that the rectangle agrees with the info shown which is below the red resistance line drawn on the chart,
thoughts,
Im still looking to see possible break out from the region given that the RSI is trading below 50 level its great if it moves past this region and starts trading past the mid range, of course this is just an idea and thought of what i would like to see happen but alot of indecision displayed on this chart shows that any thing can happen and if it breaks past its resistance and retests above my 13 moving average i will consider a buy until the next resistance
Action,
adding this pair to your rebalance trading bot is great idea , i guess i have found the perfect pair to trade in combination with Atlas Navi pair (look at my previous idea on the pair if you missed it) and TRAC (trail Origin pair if you missed it look it up on my previous posts)
as always trading new pair is always risky and dangerous can lead to losing all your funds, and this are just my thoughts and chart set up that I would consider before getting into the markets which makes the published idea not a financial investment advice whatsoever.
LONG Term GOOG DCARe-entered the market after several months on the sideline waiting for longer term indicators to look positive.
I believe this is a suitable spot to start DCA again into high conviction companies and stocks.
High conviction in the company for the long term✅
Money flow on the monthly in the red ✅
RSI Oversold on the monthly ✅
Trading around significant support (@0.5 AT Fib)✅
Market Cipher on the monthly around the 'buy-zone' ❓*
*Market Cipher not yet indicating buy, however, weekly green indicator with the above indicates the monthly buy-signal is near - hence comfortable to DCA as within my personal risk tolerances)
** NOT TRADING OR FINANCIAL ADVICE **
SPAUSDT - Initial LONGOne alt that hasn't popped yet. Nice little breakout from the falling wedge and backtest. Initial targets 0.5, 0.55, 0.62 (don't quote me on them).
Bitcoin resistance at 200-week price average. Bitcoin has been hitting resistance at 200-week price average($25k) for the past few weeks as the lower indicators test thin lines between remaining bearish or breaking bullish. PPO has both lines below the 0 level which indicate overall bearish price momentum, while the TDI shows the RSI line creating a potential double-top at the 60 level. In general, the RSI will trend between 20-60 during a bear market, and 40-80 during a bull market. I personally would like to see Bitcoin turn around here and head lower for a longer bear market of at least a year. My current average is below $20k and I would like to add more below $20k.
Short-term neutral, medium-term bearish, long-term bullish. FTX drama likely gave us a bottom near $15k, but it would be nice to see a re-test to confirm that $15k is the actual bottom.
BLURUSD Daily S/R| POC| Range Low| Price ActionEvening Traders,
Today’s analysis, BLURUSDT, trading towards its range low, holding and consolidating will be a bullish sign,
Points to consider,
- Price Actin Corrective
- Daily S/R Support
- POC S/R Support
- PA Rotation
BLURUSD’s immediate price action is corrective and is at an area that has technical confluence with the .618 Fibaoncci, POC and Daily S/R, allowing for a bullish bias.
Consolidating and creating a bottoming structure will be a sign of strength, this has yet to be produced.
Overall, in my opinion, BLURUSDT is a valid long with defined risk, price action is to be used upon discretion/ management.
Hope this analysis helps,
Thank you for following my work
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager
USDCHFThis situation has been examined in different dimensions:
1- Strong supply and demand levels that I identify with my own indicator and system.
2- The structure of recently formed waves
3- Current market momentum
4- The structure of classical and price patterns
In this idea, I identified the direction of the market in different ways and in the second step, I analyzed the potential of continuation or reversal. Usually, paying attention to the trend and strength of the trend can greatly increase the accuracy of the analysis.
In general, I tried to describe the continuation of the movement in the simplest possible way in the diagram.
⚠️ Disclaimer:
This is a personal opinion and you are responsible for any trading decisions.
if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad ❤️️
A simple sell strategy for Heating OilWith price and “commodity premiums” that we track showing signs of a structural shift, we think these represents potential tradeable set-up in the mid to long term as supply and demand finds some way to normalization after the pandemic & war shocks over the past 2 years. Hence, we think commodities will continue to be where the actions at.
With winter just about over, we thought it would be perfect time to look at the ‘talk’ of pre-winter, Heating Oil.
After a staggering 600% run-up from the depths of 2020 to the peak pre-winter last year, Heating Oil might just be on the opposite journey now.
On a weekly timeframe, Heating oil has decisively broken the uptrend established since 2020 and now sits on the support level for the 2011-2014 period of 2.75.
Zooming closer on the RSI, the current level proves to be a pivotal point for heating oil’s trend, as each time the RSI crosses below the 40-level, it is followed by an accelerated move lower. In fact, taking a short position every time the RSI crosses below the 40-level would have netted an average of 27%, if you manage to catch the bottom!
Even if you can’t catch the bottom, following the strategy, where we build a short position in heating oil when RSI crosses below 40, and hold it until RSI crosses back above 40, would still make a respectable 18.3% average return.
On a shorter timeframe, Heating Oil seems to be trading within a descending channel, with the trend pointing lower.
Another thing we like to look at is the relationship/premium between Heating Oil and Crude Oil. However, as the two types of contracts are quoted differently, we have some work to do to rebase the prices into a comparable format. Given that Heating Oil is quoted in US Dollars and Cents per gallon, while Crude Oil is quoted as US Dollars and Cents per barrel, we can convert Heating Oil to be denominated in barrels.
1 barrel equals to roughly 42 gallons, therefore, we can simply multiply Heating Oil price per gallon by 42 to get its price per Barrel. Given Heating Oil is 2.7505 USD per gallon, this works out to be roughly 115.52 USD per barrel.
This allows us to see the relationship between Heating Oil and Crude oil. The former is trading at a premium to latter.
Over the past winter the Heating Oil premium reached it’s all time high, toping out close to 100 USD per barrel more than Crude Oil. With Spring now in sight, it appears a new season has dawned upon this premium, with the Heating Oil - Crude Oil premium now falling below the previous highs in 2011-2012. Should this continue, then we can expect the price gap between the 2 types of oil to close, with Heating Oil being the likely culprit to drive it lower.
The general downward trend in current Heating Oil prices, falling Heating Oil premiums and historical RSI-based sell trigger, all point towards a potentially lower Heating Oil.
We would consider setting up the trade in the following 2 ways to express our view:
1) Wait for the RSI to cross below 40 and sell, setting the take-profit based on the RSI crossing back above 40 again to close the position. Each 0.0001-point move in Heating Oil Futures Contract is $4.20 USD
2) Trade the spread between Heating Oil and Crude Oil by taking a short position in the CME Heating Oil Futures Contract and a long position in the CME Crude Oil Futures Contract. Given that 1 Heating Oil Contract is for 42,000 gallons, which is equivalent to 1000 barrels, we can Short 1 Heating Oil and Long 1 Crude Oil to form the spread, in order to match the position size of the contracts.
The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description.
Reference:
www.cmegroup.com
www.cmegroup.com
Short in KOTAKBANKShort Opportunity in KOTAKBANK
1. 200 EMA Resistance on Daily/2H/4H
2. Negative RSI
3. MFI breakdown
4. BANK NIFTY Negative sentiment
SANDUSDT Int Daily S/R| Psfp| .618 Fibonacci| Price Action Evening Traders,
Today’s analysis – SANDUSDT- trading towards a key resistance area where a rejection is plausible,
Points to consider,
- Price action impulsive
- Int-Daily S/R Resistance
- .618 Fibonacci Resistance
- Deviation
SANUSDT’s immediate price actin is trading towards a key region where there is resistance confluence with the int-Daily S/R and the .618 Fibonacci, this allows for a bearish bias.
Price action trading around the resistance will increase the probability of a potential deviation.
Overall, in my opinion, SANDUSDT is a valid short with defined risk, price action is to be used upon discretion/ management.
Hope this analysis helps,
Thank you for following my work
And remember,
“Trade the market in front of you, not the one you want!” – Scott Redler
Relative Strength Index (RSI) | Technical Indicator You Must Kno
✳️What is the RSI Indicator
What is the RSI Indicator? The relative strength index is a market indicator that signals when the asset is over-bought or over-sold. This is a momentum-following indicator that measures how fast the price is moving and changing. The RSI uses different types of averages, but its primary purpose is to show whether a trend is strong or weak within a series of prices.
In general, a strong trend is indicated by values close to 100 while a bearish trend is often indicated by a value near 0.
✳️RSI Indicator Settings
The RSI has the standard setting. When you activate the indicator in any platform the defualt setting are 3 values. They are 6, 14 and 24. These are averages. The 30 and 70 value lines are calculated based on the lower and upper values and the middle lines is the oscillar which is a 14 period average. When the 14 period oscillator is above the 24 period is overbought and when the 14 period is below the 6 period is oversold.
✳️Opening Positions on RSI Signals
The main signal the RSI oscillator generates allows defining overbought and oversold price ranges. Although it is frequently used as a filter in systems where the main indicator is a trend one, it might be possible to try trading using RSI signals only. When indicator’s line goes above the level 70 or below the level 30, it signals that market is overbought/oversold, and it is necessary to wait for the next signal confirming a trend reversal.
✳️RSI Trendlines
Contrary to popular belief, the Relative Strength Index (RSI) is a leading indicator. This quality can be observed by using trendlines on the RSI chart and trading its break. When the RSI is rising, an upward trendline is drawn by connecting two or more lows and projecting the line into the future. Similarly, when the RSI is falling, a downward trendline is drawn by connecting two or more highs and projecting the line into the future. A break of an RSI trendline precedes an actual price reversal or continuation in the market. For instance, if the asset price breaks above a downward trendline, it is a signal that the price is about to edge upwards, either as a continuation of an uptrend or as a reversal of an existing downtrend in the market.
✳️RSI and Chart Patterns
The Relative Strength Index is one of the best technical indicators to complement raw price action signals delivered by candlestick patterns or line chart patterns. For instance, when a bullish candlestick, such as a pin bar, or a price chart pattern, such as a double bottom, occurs in a downtrend, a buy position can be opened when the RSI displays a reading of below 30 to imply oversold conditions.
✳️RSI Divergence
The Relative Strength Index also delivers divergence signals that could be a viable trading opportunity. A divergence occurs when the asset price and RSI do not move in the same direction. A positive (bullish) divergence occurs when the price is drifting lower, but the RSI is edging higher. This is a signal that the price may be heading towards a bottom and an upward reversal is about to happen. On the other hand, a negative (bearish) divergence occurs when the price is drifting higher, but the RSI is going lower. This is a signal that price may be heading towards a top and a downward reversal is about to happen.
✳️RSI and RVI
Both the RSI and the RVI(Relative Vigor Index) are oscillators, but their different qualities can help traders to pick out high-quality RSI trading opportunities in the market. Whereas the RSI focuses on price extremes (high and low), the computation of RVI seeks to relate closing prices to open prices. This means that the RVI has both positive and negative numbers, with the centreline being 0. The RVI gives information on the strength of price movement, with positive values indicating increasing momentum, whereas negative values denote decreasing momentum. The RSI is the best indicator to complement or qualify the signals delivered by the RVI, especially in trending markets. For instance, if the market is in an uptrend and the RVI delivers a bearish divergence signal (prices go higher whereas RVI goes lower). In this case, a retracement or a trend reversal will be confirmed if the RSI reading is above 70, which implies overbought trading conditions.
✳️Here is the list, though now at all exhausting of the ways to use RSI in your trading. I will add that I use it myself, even though you don’t see it on my charts for aesthetic reasons.
Like, comment and subscribe to boost your trading!
Hey traders, let me know what subject do you want to dive in in the next post?
LITUSDT Weekly S/R| .618 Fibonacci| Price Action| Trend Evening Traders,
Today’s analysis – LITUSDT – rejecting from its .618 Fibonacii and is now trading below key resistance,
Points to consider,
- Price action impulsive
- Daily S/R Resistance
- Weekly S/R Support
- Price Action Range
LITUSDT’s immediate price action is trading under resistance, as long as price stay below, it is likely to trade lower.
The Weekly S/R is the immediate support, holding this area will create a local price action range, allowing for potential accumulation.
How price action trades within the range will dictate the immolate direction
Overall, in my opinion, LITUSDT needs form a constructive range before the next expansion
Hope this analysis helps,
Thank you for following my work
And remember,
“Once you find the system that works for your style/personality and confidence is gained, wash, rinse, repeat over and over again.” – Sunrisetrader
EURUSD UP COMING FORCASTmy idea is depending on mostly movement of RSI graph and ut bot alert ... hope EUR USD price go down silly and then travel to up side... 1.06500 TO 1.07100
USDCAD Buy LimitIt seems that after breaking the RSI trend line and considering the fundamentals news, the upward trend will continue
LTCUSDT Int-Weekly S/R| Daily S/R| .618 Fibonacci| VAH Evening Traders,
Today’s analysis – LTCUSDT – trading at a clear resistance where a trend reversal is probable,
Points to consider,
- Price action impulsive
- .618 Fibaoncci Resistance
- Daily S/R Resistance
- VAH Resistance
LTCUSDT’s immediate price action is trading at an area of technical resistance confluence, this allows for a bearish bias.
The area is in confluence with the .618 Fibonacci, VAH, Daily S/R and the Internal Weekly S/R, this deems the area for potential trend reversal.
The immediate objective is the lower Daily S/R Support, a bounce here is likely which will then need a further analysis.
Overall, in my opinion, LTCUSDT is a valid short with defined risk, price action is to be used upon discretion/ management.
Hope this analysis helps,
Thank you for following my work
And remember,
“Confidence is not "I will profit on this trade." Confidence is "I will be fine if I don't profit from this trade.”
― Yvan Byeajee
ATOMUSD Bullish OB| Monthly S/R| Psfp| InternalS/R| PAEvening Traders,
Today’s analysis – ATOMUSD- trading away from a key support region, a pullback needs to hold for a bullish continuation.
Points to consider,
- Price action impulsive
- Monthly S/R Support
- Psfp Liquidity
- Bullish OB Support
- Internal S/R Support
ATOMUSD’s immediate price action is trading with consecutive higher lows, allowing for a bullish bias.
The current level of confluence is situated around the Monthly S/R, this includes the VAH, Psfp, Internal S/R and a Bullish OB.
The overall objective is the Daily S/R, exceeding this level will lead to a trend continuation.
Overall, in my opinion, ATOMUSD is a valid long with defined risk, price action is to be used upon discretion/ management.
Hope this analysis helps,
Thank you for following my work
And remember!,
“It is always the best discretion to let the market show us where it is going and just simply follow (this would be prudent), rather than predict where the market is going and place a position (this would be gambling).” -Anne-Marie Baiynd’
DOTUSDT Range VAL| .618 Fib| Psfp| Price Action Evening Traders,
Today’s analysis – DOTUSDT- rejection of from a key level and is now rotating towards the lows,
Points to consider,
- Price action impulsive
- POC S/R Support
- .618 Fiboancci Support
- Range VAL Support
DOTUSDT’s immediate price action is trading towards an area that has technical confluence with the .618 Fiboancci, VAL and the POC region, this allows for a bullish bias.
Holding support at the technical level will allow for a bounce back towards the range high,
Overall, in my opinion, DOTUSDT is a valid long with defines risk, price action is to be used upon discretion/ management.
Hope this analysis helps
Thank you for following my work
And remember,
“Hope is bogus emotion that only costs you money.” – Jim Cramer
OCEANUSDT Bullish MS| Local Resistance| Higher Low| Liquidity Evening Traders,
Today’s analysis – OCEANUSDT- trading at a local resistance where a rejection is plausible,
Points to consider,
- Price Action Impulsive
- Local Psfp Resistance
- Daily S/R Resistance
- Dynamic S/R Support
- .618 Fibonacci Support
- Local VAH Support
OCEANUSDT’s immediate price action is impulsive, putting a local high here will increase the probability of price action correcting for a higher low.
The local POI will be the Dynamic S/R Support that is in confluence with the Psfp, VAH and .618 Fibonacci, allowing for a bullish bias.
Overall, price action needs to retrace for this trade to become probable, discretion is to be used upon execution/ management.
Hope this analysis helps!
Thank you for following my work
And remember,
“In order to succeed, you first have to be willing to experience failure.”
― Yvan Byeajee,
