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Rsi_divergence

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.
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
Short SOL scenarioEnglish I`m applying a very simple strategy with the RSI where I see "an exhausted price" in there, we are going to a 1:3, at least. Crypto market is going up pretty hard, but I believe it is going to have a retracement, before making HH. *THIS IT NOT INVESTMENT RECOMMENDATION OR SOMETHING LIKE THAT, THIS IS ONLY FOR ANALYSIS AND EDUCATION PURPOSE* Español Estoy aplicando una estrategia sùper simple con el RSI donde veo un precio con agotamiento allì, vamos por un 1:3. El mercado cripto está súper alcista, pero creo que tendrá un retroceso, antes de hacer un próximo, alto más alto. *ESTO NO ES RECOMENDACIÓN DE INVERSIÓN NI NADA QUE SE LE PAREZCA, ESTO ES SOLO PARA ANÁLISIS Y EDUCACIÓN*
Short
by DarkTradingCapital
XAU/USD Short-Term AnalysisHello friends. Hope yore well. Lets take a quick look at Gold : 1.we approch a mid-term valid trendline and it can be considered as a pullback to this line. 2.as you can see price bounce from this trendline with a strong engulf candlestick. 3.a short-term trendline breaks too and we saw a pullback to it as well 4.Also we can see a Bullish Divergence in oversold area 5.2030 Support level have seen with overlap with this signs so gold will rise to the upper band of the longterm Trading range which is about 2060. Hope this is useful for you. Have great times. thanks for reading
OANDA:XAUUSDLong
by TraderAmin-KZ
ATAI looking to bottom out After closely monitoring psychedelic stocks for approximately six months, my attention has been drawn to ATAI. Despite enduring a challenging period over the past couple of years, the stock appears to be signaling a potential turnaround. Volume Analysis A notable observation is the diminishing volume during each downturn, coupled with a substantial surge in volume in November of the previous year. This pattern indicates a decisive breakout from the prevailing trend. RSI Insights Simultaneously, the Relative Strength Index (RSI) reached its peak at 69. This represents the highest momentum level in the stock's history, signaling increasing strength. This noteworthy event marks the first instance of the weekly RSI surpassing the halfway mark, hinting at the initiation of a potential uptrend. Further supporting this indication is the presence of a bullish RSI divergence. Anticipated Developments My focus is straightforward, with two key criteria: Demand Zone Confirmation ($1.05 - $1.29) Previous High Breakout ($2.23) The occurrence of these events could pave the way for significant upside potential in ATAI, as well as the entire psychedelic industry, with target projections reaching into the double figures.
NASDAQ:ATAILong
by joshuashepherd877
2
Falling wedge breakout on TSLA hourlyLooking at the massive falling wedge breakout on TSLA hourly chart. Also notice the oscillator on the Ultimate RSI, just crossed north of 50 and looks like it wants to retest those +70 levels once again. The next supply zone sitting at $240-$242, if we break through that the next zone after that will be $248-$250, and if we break that we should see $255-$265. If not we will break back down to demand at $235-$230. This and NVDA breaking out, along with AAPL could bring a nice lift back up for SPY...
NASDAQ:TSLALong
by impossiblebull
5
ATOM'S Descending Channel with a Fakeout 📉🔄📈ATOM, currently traversing a descending parallel channel, recently executed a fakeout above the channel's upper boundary. This strategic move has set the stage for a nuanced analysis and potential trading opportunities. Key Technical Observations: Descending Parallel Channel: ATOM's price movements have been encapsulated within a well-defined descending parallel channel. The lower and upper boundaries of this channel have played a pivotal role in guiding recent price action. Fakeout Dynamics: The recent fakeout above the upper boundary of the channel is a noteworthy event, signifying a temporary breach of the descending structure. Fakeouts often provide valuable insights into potential shifts in market sentiment. Detailed Analysis: Channel Fakeout and Maximal Retest: The fakeout event above the upper boundary of the channel suggests a temporary breach of the prevailing descending structure. Subsequent to the fakeout, a retest of the daily maximum has further reinforced the potential strength of the downside. Strategic Entry Points: Traders may find opportune entry points around the expected retest zone of 8-8.4$. Initiating short positions in this region aligns with the prevailing descending channel and the implications of the recent fakeout. Anticipated Price Movements: Retest and Potential Upside: An anticipated retest of the 8-8.4$ zone could serve as a strategic entry point for short positions. Following this, a bearish scenario could unfold, potentially leading to a decline in price. Longer-Term Targets: With the short-term bearish outlook, traders might strategically plan for a subsequent rise to the 15$ level. It's essential to reassess market dynamics and consider the potential for trend reversals during this phase. Conclusion: Tactical Maneuvers in a Descending Channel ATOM's recent fakeout above the descending channel's upper boundary presents traders with a tactical opportunity. The expected retest zone becomes a crucial area for strategic entries, aligning with the broader descending structure. While short-term bearishness is anticipated, longer-term targets suggest potential upside movements. 📉 Descending Channel Dynamics | 🔄 Fakeout Strategies | 📈 Strategic Entry Points 💬 Share your insights on ATOM's recent fakeout and your approach to navigating its current technical landscape! 🌐✨
Long
by Yaroslav_Krasko
1
TSLA: Approaching a major turning point.TSLA's shares are collapsing, even though the company is beating vehicle delivery expectations. This can be explained by the fierce competition coming from China, as TSLA lost its position as the world's biggest seller of electric cars to BYD in the last four months of 2023 - even though the American company managed to beat its own expectations. This not only affects TSLA, but also the shares of RIVN and LCID, the former of which also managed to exceed expectations for vehicle production. From a technical point of view, the price could fall to the next support level in the next few days, around $230 . The price is already entering a short-term downtrend , as it has lost the 21 EMA, and in the absence of a clear bullish reaction that could reverse sentiment, this is the most likely scenario. What should the price do so it can reverse this bearish sentiment? It would be nice to see a clear reversal candlestick, closing above the 21 EMA again . So far, there are no technical buy signals in my view. Are there any other possible support points? Yes, we see the 50-period and 200-period averages very close to each other, also in the $230 area mentioned earlier, reinforcing the idea that $230 could be an important support for TSLA . It would be important to see the price react above this area to avoid a Death Cross (when the 50MA breaks the 200MA downwards). A warning sign is the divergence between the RSI and the price. While the price was making higher tops, the RSI was already making lower tops, as evidenced by the red arrows in the chart above. In addition, the RSI is already losing its support levels, while the price is still above them (green lines). This can be characterized as an Advanced Breakout (when an indicator anticipates a breakout in price). For now, TSLA shares are in correction territory, and although we see a promising support zone near $230, I don't see any technical evidence that convinces me of a bullish reversal at the moment. I'll keep you updated on this, so remember to follow me for more daily analysis like this, and support this idea if you like it or learn something new here. All the best, Nathan.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
2
USDCAD - Bullish Divergence Heading into PCETaking a look at the 1 hour timeframe, we have some clear bullish divergence with RSI and price-action. Whenever we get a setup like this, price-action does tend to bottom out and is likely to push higher. The question now is "Will PCE come in better than expected?" As of right now, the economic calendar forecasts for weaker than previous figures. This may leave room for a surprise to the upside and thus in fact bottom out USDCAD at least on the 1 hour timeframe.
Long
by Michael_Harding