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Rsi_divergence

Tilray approaching a swing trade and/or shorting opportunityNASDAQ:TLRY is approaching a resistance range and is at the top of a W pattern. It's rsi is also overbought above the 70 level. Volume is also trending upwards and has reached the level where the previous volume high (and price trend reversal) was. The trading opportunity is around the 3 scenarios shown in the chart, with, due to the technical indicators mentioned above, scenario 2 and then 3 being the most likely. Trading approach would be to wait until after the quarterly earnings are released and see if: Scenario 1 The price breaks above the resitance range, apply a 3 day filter to ensure it's not a fakeout, and swing trade upwards to approx. $3. Scenario 2 A more likely scenario, the price starts to decline and enter then enter into a short with a take profit at $1.60. Exact entry point for the trade might be difficult to determine, especially as the previous moves in price have been so explosive that there may not be an optimum tim eto enter, thus shorting would be a higher risk trade. Scenario 3 Wait until the price reaches the support level since November 2023 (approx. $1.6) and enter a swing trade back up to the resistance range with an exit at approx. $2.5. To reduce risk, enter the swing with a combination of the RSI being at 30 and/or a 3 day filter to reduce the risk of the price breaking down from $1.6 to a new low. Scenario 3.5 Same as scenario 3 but with the support level being around the DMAs and price range where the price movement faced some resistance on it's way up during mid-March 2024. A more likely scenario, the price starts to decline and enter then enter into a short with a take profit at $1.60. Exact entry point for the trade might be difficult to determine, especially as the previous moves in price have been so explosive that there may not be an optimum time to enter, thus shorting would be a higher risk trade. NOTE: Those with a risk appetite large enough may use the technical indicators mentioned in the first paragraph as enough of a comfirmation to enter a risky short trade: Entry point: Now ($2.45) Stop Loss: $2.70 Take Profit: $1.60 Risk:Reward ratio: 1:3
NASDAQ:TLRYShort
by slip_stream
5
SMR approaching DCA opprtunityNYSE:SMR is approaching a potential entry point for the start of a DCA strategy for a long term hold. SUMMARY Wait to see where the price moves. Using a combination of RSI reaching 30 and the price falling to (with a 3 day filter) around $4 or if the price continues to fall then around $2 (another 3 day filter at this level too), begin entry with a DCA strategy. Alternatively, if the price rises above $6, after a 3 day filter, begin DCA. If the price starts forming a flag between $5 and $5.80, enter once RSI has reached 30 (for those with a higher risk appetite can just use the RSI as an indicator) or await a range breakout/down to either enter at the $4 or $2 or $6 level as described above with or without a three day filter. The price was seeing exponential growth in the leadup to the latest quarterly earnings report and popped a few days after. However, the price has subsequently fallen back down and now seems to be forming a pattern. It is unknown really what caused the price to jump. And there has not been any significant insider trading on the day (or lead up to the day) where the price recently peaked. The company itself has a healthy balance sheet and debt/equity ratio. It is still in the growth phase as they build somewhat emerging tech (nuclear power is established but their approach to providing customers modular smaller power stations is unique) and a large part of their customer base is still a maturing market (power hungry data centres wanting their own onsite nuclear power source, particularly those now being setup for providing AI). The company's income statement reflects this as net income over the recent years remains negative and is also not showing an upwards trajectory. With this in mind this would be a stock for a long term hold with a DCA investment strategy until, whichever comes first, either a total dollar figure invested is reached or the company becomes long term profitable (i.e. exits the growth phase). With the recent price fluctuations it is crucial to not enter too early as due to the immature nature of the industry and company, the price also has a high likelihood of remaining at a low level for quite some time. However, a DCA entry opportunity is also forming based on one of the 3 of the more likely price trend scenarios described in the chart. Details on these are as follows. Scenarios 1 and 2: Wait to see which way the price begins to move and see if it falls to one of the two support levels identified, make use of the RSI to identify the optimum entry point. If the price falls to $4, add in a 3 day filter to see if the price doesn't fall further and likewise add in a 3 day filter if the price continues to fall from $4 to $2. If the RSI has reached 30, and the 3 day filter has shown that $4 or $2 were a support level begin DCA. If the price continues to fall below 2, halt the DCA to see where the price becomes stable and then restart once the RSI starts trending upwards again. Scenario 3: If the price begins ranging between $5.30 and $5.80, depending on risk appetite, begin DCA once the RSI reaches 30 or starts trending upwards. If the price breaks out above $6, then add in a 3 day filter to ensure the breakout wasn't a false dawn, and start the DCA investment independent of where the RSI is.
NYSE:SMRLong
by slip_stream
TSLA - Solid Bullish Divergence TSLA has been a solid short but I have a hard time believing that this stock is down for the count. Apparently I am not the only person who is thinking this way because in spite of the downside price action, the RSI (Relative Strength Index) is indicating that sentiment is overall bullish still and price should reflect it in the short term. I don’t know if I feel super bullish with the macro outlook but as far as expecting a decent bounce out of TSLA in the short term- probability points to more likely than not- upside price action in the short term.
NASDAQ:TSLALong
by Goontata84
2
MINAUSDT Faces Resistance Hurdle: Breakout or Bearish DivergenceMINAUSDT is encountering a critical resistance level of $1.5484 on the weekly chart. This is the third attempt to break through this level in the daily timeframe. Technical Analysis: Resistance: $1.5484 (Weekly) Support: $1.0113 (Weekly) Relative Strength Index (RSI): Supported at 50, Bearish Divergence Key Observations: MINAUSDT is facing a significant hurdle at a key weekly resistance level. A breakout above this level could signal further upward momentum. The repeated attempts to break resistance on the daily chart suggest persistent buying pressure. The RSI is currently at a neutral level (around 50), but there is a potential bearish divergence. This means that the price is making higher highs, but the RSI is not confirming this move by making higher highs itself. This could indicate weakening momentum despite the buying pressure. If the price cannot overcome resistance, it could find support at $1.0113 on the weekly chart, potentially establishing a trading range between these two levels. A successful breakout above resistance could lead to further gains towards the next daily resistance level at $2.0344. Conclusion: The upcoming price action for MINAUSDT will be crucial. Overcoming the weekly resistance with strong confirmation from the RSI is key for a sustained uptrend. However, the bearish divergence on the RSI suggests a potential for a pullback if the price fails to break through. This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Short
by behnoudt
AUDNZD Short idea - Diviregence 1H Time frameAfter a good bullish rally for AUDNZD, the pair reached the horizontal resistance zone combined there with a supply zone. From the perspective of RSI there is bear divergence on 1H time frame. It is a bit risky to enter in a sell position right now, but if we have a good candlestick confirmation it would be great. However, the stoploss could be outside the supply zone. The line for takeprofit 2 is the zone which I aim to close eventual position
Short
by kidagaka123
1
ETHUSD (D) may experience a decline to the $26K-$26.5KCOINBASE:ETHUSD ETHUSD may experience a decline to the $26K-$26.5K ETHUSD (D) may experience a decline to the price range of $26K-$26.5K. This assessment is grounded in the following observations: RSI divergence at both the peak and trough of the recent uptrend indicates a weakening bullish pressure relative to selling pressure. The non-breaking of the MA50 support on the initial attempt is a typical response but also suggests a reevaluation of the prevailing trend. The abrupt and notable decline, swiftly moving from the $26K price range to $22.4K, raises substantial concerns compared to the preceding ascent. Despite a robust price increase, recent volume has not demonstrated remarkable strength, highlighting the presence of numerous unsustainable FOMO factors. RSI resides in the overbought zone, signaling the potential for a price correction at this stage (yet to be confirmed as a trend reversal). The nearest price support zone lies within the range of $26K-$26.5K, presenting an opportune level for this corrective phase.
COINBASE:ETHUSDShort
by VNSmartMoney
3
Price wants 5KProbably see 5K Monday but it won't last long. In the PRZ now. Bullish enthusiasm from Friday's madness likely to persist through Monday morning. Top could be in by noon Monday, if it's not already. Notice RSI diverging... every trip to the PRZ weakens RSI, fewer and fewer issues pushing higher... won't be long now. Astonishing how short memory is, seems to last just hours or even minutes... FOMC? What FOMC? That was so yesterday man! JOLTS?! What JOLTS?! That was at 10 AM and it's 10:30 now, fogeddaboudit, BTFD!! Loook man, META announced 50c dividend! Let's drive the price to $500 that's only 1K x Dividend, what a bargain! I'll gladly pay $500 to get a 50c rebate!!
TVC:SPXShort
by DaddySawbucks
18
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.
Editors' picks
Education
by FOREXN1
15
RSI Negative Divergence: Possible Market Pullback (SPY, QQQ)UNDERLYING PRINCIPLE: Divergence between Futures/Stocks/ETFs and their Relative Strength Index (RSI) can be used to predict a bottom or a top. This method is more useful in determining a reversal in overall market than an individual stock. To elaborate the principle let's assume the market is making higher highs but corresponding RSI is making lower highs. Together this uptrend in the market and downtrend in RSI show that the market is losing strength as it is climbing up. Which essentially implies a reversal/pullback in the market. The same principle can also be applied in determining a possible bottom in the market. Say if the market is making lower lows and corresponding RSI is making higher lows. In that case we can expect an upward reversal of the market. Current Scenario: Possible Pullback To inspect the current market I used weekly and daily charts for Nasdaq and S&P 500 ETFs NASDAQ:QQQ and AMEX:SPY . In NASDAQ:QQQ weekly the negative divergence is eminent as the ETF is making higher high but the RSI is making lower high. If we zoom further into a daily setup then the same negative divergence can be spotted: For AMEX:SPY on the other hand no divergence can be observed on a weekly setup: But on a daily setup a Negative Divergence can be detected: Recent History: Bear Market Bottom As you can see in both weekly charts, the recent bear market bottom has been identified using the same method: A Positive Divergence. Thanks for reading.
AMEX:SPY
by Trading-Economist
EURUSD (H1) Potential buying opportunities may emerge.OANDA:EURUSD EURUSD (H1) Potential buying opportunities may emerge. Indicators that have manifested: 1. Convergence of the RSI is evident within the lower region, approximately at 1.072 2. The current price range exhibits a narrow band in comparison to the preceding price surge, amounting to less than one-third of the prior increase. 3. The aforementioned resistance levels appear relatively feeble, given the brevity of the resistance duration. The command can be executed as outlined below: Buy Stop at 1.07476 Stop Loss (SL) at 1.07384 Take Profit 1 (TP1) at 1.07593 Take Profit 2 (TP2) at 1.07732 Note: Capital management 2% Follow us and read my status to follow more forexsignal !
Long
by VNSmartMoney
5
BTC 4H Based on Acs Channel and Rsi Dvg movesi personali think this and next 4 hours candles will be very important for price movements we have very bullish rsi potential plus fud news about all bigs dumping there btc and that everything together plus the what i see on chart i'm pretty bullish if dvg confirms bullish in that case i think we will never see price below 41-40K if not we can see 38 easily before next bull run and ATH Not Financial Advice just what i see and think and dont forget time goes on and halving comes more near and near
by SuisenSuru
Are you ready to make some money from the forex market? 🤑💌Our AI screener has detected a great opportunity for you: NZDCAD is in a ranging market for the next few days! What does that mean? It means that the price is moving sideways between two levels: 0.8153 and 0.8333. That’s a range of 170 pips or more! How can you profit from this situation? 📊There are two ways: 👨‍💻If you are a manual trader, you can use oscillators like RSI, Stoch, or MACD divergence to spot the best entry points for both long and short trades. You can use lower timeframes like M15 or M5 to find these signals. 🤖If you are a bot trader, you can use a martingale or zone strategy with proper risk control and money management. Trading with a bot will save you time and effort, as you don’t have to watch the charts all the time. You just need to check the bot trading every 4 hours to see if the market pattern changes from ranging to trending. If it does, you can close the bot and take your profits! This is a simple and effective way to make money from the forex market. But act fast, this opportunity won’t last forever! 🔥 To get more trading ideas like this, follow our channel and subscribe to our newsletter. We will send you the best forex signals and tips every week. Don’t miss this chance to earn money online with us! 😊 Disclaimer: Trading forex is risky and you should only trade with money you can afford to lose. We are not responsible for any losses you may incur from following our signals. Always do your own research and analysis before placing any trades.
by ICT_Trader_SB