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Rsi_divergence

Bitcoin's Oversold - RSI for Trading Success 📊📉🔍 Understanding Oversold: Imagine a market where fear has taken over, prices are plummeting, and panic seems to be the driving force. This is the realm of oversold conditions – a state where selling pressure has pushed prices to levels that might be considered undervalued. 📊 The RSI Signal: Enter the RSI, a tool that can help you identify whether an asset, like Bitcoin, is in oversold territory. The RSI measures the speed and change of price movements, indicating potential overbought or oversold conditions. 📉 Interpreting RSI: When the RSI value drops to 30 or below, it's a sign that the asset might be oversold. This means the selling pressure has potentially pushed the price too low, creating an opportunity for a potential rebound. 💡 Tactical Insight: Recognizing oversold conditions using RSI is like spotting a light at the end of a tunnel. It doesn't guarantee an immediate reversal, but it suggests that a potential turning point could be on the horizon. 🚀 Trading Strategy: So, how can you utilize this RSI insight? When Bitcoin's RSI drops below 30, it might be an opportunity to consider buying. Remember, timing is crucial – combining RSI with other indicators and trend analysis can refine your strategy. So, what's the bottom line when it comes to RSI and identifying oversold conditions? 📊 It's about using tools like RSI to gauge market sentiment and recognize potential opportunities. Remember that trading is a blend of art and science, and RSI is just one tool in your toolkit. Stay curious, keep honing your skills, and remember – while oversold conditions might signal potential reversals, they're just one piece of the crypto puzzle. 🚀🧩 ❗See related ideas below❗ Follow + Like this post and leave a nice comment, it will allow me to move faster and make more useful content! 💚💚💚
Long
by Yaroslav_Krasko
8
NASDAQ Moving Lower (1W)NASDAQ Weekly Price Chart After forming a double bottom in late 2022 the NASDAQ bounced and has melted up from its lows approximately 48% confirming that it was more than just a bear market rally. Most recently the NASDAQ has run into resistance (Light Red Box) and has descended roughly 3% past a minor trend line on the daily chart (not shown). Shorter term EMA's are beginning to even out (12-day / 26-day) indicting the beginning of a change in the direction of price action which will most likely move lower towards the target supports (Light Green Boxes). If the bottom support (Red Solid) is broken (pretty big "if" at the moment) then the possibility of breaking the long-term trend line (Yellow Solid) will come into play, however at this point it is premature to assume this comes to fruition. Relative Strength Indicator The major trend line (Yellow Solid) highlights the divergence from price action beginning in May 2022 and confirming the double bottom ending in December 2022. Most recently the RSI has remained elevated above the 70 line indicating a strong trend, however, the RSI has fallen back below the 70 signaling weakness. The RSI most likely moves down toward the major trend line and major support (Red Solid) from this point. Considering a cradle is in play with the resistance and trend line crossing, it will more than likely bounce with price action allowing the price to attempt one more move higher but will ultimately fail along with RSI failing to make a higher high and confirming price action. If the support and trend are broken it is most likely game over. On Balance Volume OBV bounced along with price and RSI in December 2022 and continued higher while making two consecutive bull flags confirming the movement. The OBV has failed to move higher after encountering resistance (Aquamarine Dotted) while retesting the major trend line (Yellow Solid) and seemingly has begun to move lower (emphasis on begun to). It is also notable to mention that a minor trend line (Yellow Dotted) has created a cradle that the OBV has so far failed to break. If the major resistance (Red Solid) is broken then it is basically game over, but we have two areas of support (Light Green Boxes) that will need to be broken first. The major resistance has had previous breaks which led to major downturns that can be seen in December 2000, February 2005, and September 2008 (all shown above). TDLR; Just want the meat and potatoes huh? Don't worry our entrees always Seem Legit. Price action recently hit resistance and has begun to move lower while EMA's begin to flatten. There's a 3% move down from a minor trend line on the 1D (not shown). The RSI is showing a bearish divergence after remaining elevated over the 70 line and beginning to move lower. The OBV looks to be forming a double top, and has run into resistance from a major and a minor trend line. Don't forget that this could take months to play out since this is the weekly chart. What Seems Legit? Possibly a bounce here from the support formed Jan - Mar 2022 in conjunction with the 12-day or 26-day EMA, retest the recent high, fail to break it and begin to move lower. It might just push lower due to the RSI on the 1D moving below the 50 line (analysis of the 1D has been posted). "History doesnt repeat itself but often it rhymes" - - Tap the 50-day EMA and carry on (2019) - Crash to the major trend line and carry on (2020) - Break the major support on the OBV and head lower (2000, 2005, 2008) Chart Key Yellow Solid = Major Trend Line Red Solid = Major Support Aquamarine Solid = Divergences Red Box = Major Resistance Green Boxes = Supports / Target Areas
NASDAQ:NDXShort
by Seems_Legit_Research
1
Trading RSI Divergence: Unveiling Potential Opportunities In the world of technical analysis, the Relative Strength Index (RSI) serves as a valuable tool for traders seeking to identify potential trend shifts and entry points. RSI divergence, a divergence between the RSI indicator and the price movement, is a powerful signal that can offer insights into upcoming price reversals. This article provides an in-depth exploration of how to identify RSI divergences and the different types that traders encounter. Understanding RSI Divergence: RSI divergence occurs when the movement of the RSI indicator diverges from the movement of the price chart. It can signal a change in momentum and a possible upcoming trend reversal. There are two main types of RSI divergence: bullish and bearish. Bullish Divergence: Bullish divergence happens when the price forms lower lows while the RSI forms higher lows. This suggests that although the price is trending downward, the RSI is showing potential upward momentum. Bullish divergence can indicate that a downtrend might be losing steam and a bullish reversal could be imminent. Example of Bullish Divergence : Bearish Divergence: Bearish divergence occurs when the price forms higher highs while the RSI forms lower highs. In this scenario, the price is moving upward while the RSI indicates a potential loss of upward momentum. Bearish divergence can signal that an uptrend might be weakening and a bearish reversal could be on the horizon. Example of Bearish Divergence : Identifying RSI Divergence: To spot RSI divergence, follow these steps: Analyze Price and RSI Trends: Examine the price chart and the RSI indicator. Pay attention to the highs and lows on both the price chart and the RSI line. Look for Discrepancies: In bullish divergence, when the price forms lower lows, check if the RSI forms higher lows. In bearish divergence, when the price forms higher highs, check if the RSI forms lower highs. Confirm with Other Indicators: Utilize other technical indicators or chart patterns to confirm the divergence signal. These indicators can strengthen the validity of your divergence findings. Consider the Trend: Evaluate the prevailing trend on higher timeframes. Divergence signals are more significant when they align with the broader trend direction. Be Mindful of Timeframes: RSI divergence signals can occur on various timeframes. Consider using multiple timeframes to validate and refine your divergence analysis. Conclusion: RSI divergence is a potent tool that traders can use to identify potential trend reversals and entry points. By understanding the different types of RSI divergence and following a systematic approach to identification, traders can gain valuable insights into the underlying momentum of an asset's price movement. Remember that while RSI divergence can provide powerful signals, it's essential to use it in conjunction with other technical analysis tools for a comprehensive trading strategy. 🚀🔍
Education
by Yaroslav_Krasko
📉🛢️ Crude Oil Technical Analysis: Bearish Setup in Focus 📈🐻🚨 Oil traders, exciting times ahead! A compelling bearish opportunity has emerged in the 4-hour timeframe. The price of Crude Oil has recently encountered a crucial supply zone, where a strong rejection was formed. Adding to the bearish outlook, the RSI indicator reveals a bearish divergence, supporting our thesis for a downside move. As traders, you have two strategic options to approach this setup: 1️⃣ Enter a short position right from the supply zone, utilizing the proven supply zone strategy to capitalize on the rejection and potential decline in price. 2️⃣ Exercise patience and wait for a breakdown of the trendline, which will provide additional confirmation to the bearish scenario before initiating your short position. For both approaches, the first take profit level awaits at approximately 73.50, and our ultimate target stands at 71. This is a significant level where a large pool of orders is anticipated, making it an attractive target for taking profit. Feel free to share your toughts in the comments section, follow me for updates and don't forget to press the like button if this insight was helpful !🚀
TVC:USOILShort
by Thomas_Zito
13
UNIUSDT Bearish Divergence 1H and 4H🚨📉 Alert to Crypto Traders 📉🚨 📈 #UNIUSDT #BullishTrend #BearishDivergence 📉 Crypto community, pay attention to UNIUSDT! 🚀📉 📈 The overall trend for UNIUSDT in the 1-hour and 4-hour time frames remains BULLISH, forming Higher Highs (HH) and Higher Lows (HL). 📈📈📈 🚨 However, we've spotted a concerning sign: #BearishDivergence on the Momentum Indicator RSI. 📉 RSI is showing Lower Highs (LH) and Lower Lows (LL) despite the price making higher moves. 📉📉 📉 This bearish divergence can be an early warning signal of a potential trend reversal or correction. 🛑🔄 📝 Trade Recommendation: 📌 Keep a close eye on UNIUSDT's price action and RSI movements. 📌 Consider tightening stop-loss levels or reducing position sizes to manage risk effectively. 📌 Exercise caution when opening new long positions, as the bearish divergence could lead to a pullback. 📊 Remember, successful trading involves understanding both bullish and bearish signals to make informed decisions. 🧠💡 🛡️ Trade responsibly and stay updated with market trends! 🚀📉 #CryptoTrading #TechnicalAnalysis #RSIDivergence #TradeSmart #RiskManagement #MarketAnalysis Disclaimer: This analysis is for informational purposes only and not financial advice. Cryptocurrency trading carries risks, and past performance does not guarantee future results. Always do your research and consult with a professional financial advisor before making trading decisions.
by T-Q
1
Gold 1D Analysis , Bears comingHello friends. I saw a three top pattern in 1D chart and a bearish divergence included too. after the 3rd time price touch 2050 Resistance level , we can see in picture below , Buyers couldnt lead price upper and Sellers came in strongly. So , as you can see in Zoomed Chart , we have a Bearish Engulfing pattern there and in the main chart , we see a decrease in RSI tops but 3 tops placed in a line. this means the Trend will weak and the price will Drop. I think our Swing targets are 1958 (Former Bottom) and 1933(EMA 50). Thank you for reading my IDEA. PLZ share me your opinion. Have good trades. <<< LEARN first , then Omit L & EARN >>>
GShort
by TraderAmin-KZ
6
Sell GBPCHF Head and Shoulders PatternI have posted about this in my previous idea on 22nd of June saying there is a Head and Shoulders pattern on the 4H timeframe. Now price is breaking the neckline to complete the head and shoulders formation. Now is the time to sell at the close of the current candle.We also have RSI divergence giving extra confluence. I believe we don't need this large stop loss that I have said in my previous idea (which was 1.14444) but instead a tighter stop might be better and make more sense of the current long bearish candle. Trade Setup: Entry - At the close of the current candle Stop Loss - 1.14124 Take Profit - 1.11679 Good Luck and happy trading.
Short
by fayezhazzem
GBPCHF Head and Shoulders PatternThere is a head and shoulders pattern on the 4H timeframe on GBPCHF that has formed at a resistance level and now starting to show weakness as the uptrend runs out of steam.However I strongly recommend waiting for the neck line to be broken first and then enter a short trade.Also another confluence for this trade is the RSI divergence suggesting a downtrend.The trade setup for this would be to enter at the break of the neckline(wait for candle close) which is also a flip zone( resistance turned to support) and set stop loss at 1.14444 and take profit at the second support level at about 1.11679 Trade Setup: Entry - at the break and close of neckline Stop Loss - 1.14444 Take Profit - 1.11679
Short
by fayezhazzem
RSI Divergences!🐸 RSI (Relative Strength Index) divergences refer to a technical analysis tool used to identify potential trend reversals or continuations in the price of a financial asset. RSI is a popular momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions. 💥 Divergences occur when the price of an asset moves in a different direction than the RSI indicator, suggesting a potential shift in the underlying trend. There are two main types of RSI divergences: 💥 Bullish Divergence: This occurs when the price of an asset forms a lower low, but the RSI indicator forms a higher low. It suggests that the selling pressure is weakening, and a bullish reversal may be imminent. Traders often interpret this as a signal to consider buying or going long on the asset. 💥 Bearish Divergence: This happens when the price of an asset forms a higher high, but the RSI indicator forms a lower high. It indicates that the buying pressure is diminishing, and a bearish reversal may be on the horizon. Traders often view this as a signal to consider selling or going short on the asset. 🐸 RSI divergences are considered as potential reversal signals, but they should not be relied upon solely for making trading decisions. It is crucial to combine them with other technical analysis tools and indicators, as well as considering fundamental factors, to increase the probability of accurate predictions. Traders often use RSI divergences in conjunction with trendlines, support and resistance levels, and other momentum indicators to confirm their trading decisions.
AMEX:SPY
by A1TradingHub
Global DOW, SPY, NAS Support CorrelationThe 24 hour US stock indices have a solid correlation and showing you where buy support is. The top chart is the US30USD. The middle is the SPX500USD. The bottom is the NAS100USD. Since these charts trade 24 hours a day 5 days a week there never is a gap to deal with messing your oscillators. There is a term I like to use called "No Man's Land". It includes all areas of a Moving Average Oscillator that don't connect to some form of support trend line or resistance trend line. Don't trade in those areas. Look for support and resistance and set alerts so you can trade at those key points. We are hunters not killers. Hunters still fail, but hunting at key points allows you to set tight stop loss and move on to the next hunt. If you get stuck in "No Man's Land" then you have to decide to wait and hope support or resistance gets tested and works in your favor. That is not fun to feel and makes you emotional. Things can always reverse due to unexpected fundamentals. If that happens, be patient and start hunting the possible next support trend line or resistance trend line. And slowing down your lookbacks is vital to learning the bigger picture of things. Just because the preset value for RSI is 14 lookback. Doesn't mean you can't use other numbers. Fib numbers open up doors you've never seen. Good luck hunting
OANDA:NAS100USD
by Craig_Claussen
USDJPY Trend Shift Short Trade SetupOn the 1 hour timeframe USDJPY has shifted from making higher highs and higher lows to barely making any higher highs and now broke the recent swing high.It also found resistance at an important level and made fake higher highs which immediately reversed.The uptrend has ran out of steam and a new downtrend has started.I believe it now a good time to take a short trade and profit from this downtrend as it is still early and at the time of writing this we have a retest at the previous support level that has turned to resistance.There is also a clear RSI divergence emphasising the bearish market.As for stop loss I recommend you set it at around the 141.760 level above the wick of the red candle and for take profit price previously struggled to break a resistance level at around the 140.240 level so this is where I have set my take profit. This is not a financial advice.Always do your own research.
Short
by fayezhazzem
C3.AI: AI = SHORT - wyckoff distribution & bearish divergence1st - Bearish Divergence: RSI & MFI on 1D & 1W chart 2nd - Wyckoff Method: Distribution TR phase C (UTAD TEST) more pronounced in the 4&1H charts. Analysis: There seems to be weakness in the stock, and despite the recent highs and uptick in volume the exhaustion can be seen per the TA presented. BUT REMEMBER, the AI craze is still on going and this could be invalidated in minutes if the whales choose to push the price higher. Targets if you trust the analysis: Its pretty simple, I use fib retracement levels 21% and 38.2% as targets. remember to use risk management and positioning! *THIS IS NOT AN INVESTMENT ADVICE, JUST SHARING MY ANALYSIS AND INTERNAL THOUGHTS TO MYSELF*
NYSE:AIShort
by Isranuell
3
Market to Drop SoonThe overall stock market is expected to drop in the near future. This will either happen Tuesday or Wednesday. The S&P 500 has some historical trends based on the indicators and trends in the indicators. With help from the Elliot Wave analysis we can see that wave 3 has nearly fully formed. But lets look at the indicators and historical trends. If you look at line A where in the past the RSI reached above 70 and only lasted 8 hours until it dropped. At Line B the RSI has just been above 70 for 2 hours. Does this mean we have 6 hours until the next decline? 4-8 hours is a more appropriate time range and that is just a couple of trading days. I have evenly reduced my personal portfolio today to lock in profits and not let my portfolio take the hit when the market drops as I am focused on hyper aggressive growth. When the market drops I will buy back in just in time for my portfolio to continue growing. Comment thoughts below!
SP:SPXShort
by Myantman101
4
THIS IS BHARTI AIRTEL IDEA FOR TRADINGAs we can see stock is trading above 50ema and making hammer candles with good volume. from ATH and rsi divergence stock correct almost 5% And Doji candle on 8th Dec after a downtrend ends and the next candle formed is a hammer candlestick. which is indicating a bullish reversal, Singh. Bharti Airtel Ties Up with Meta, STC to Bring World's Longest Subsea Cable to India. (07-12-2022) The chart mentions a good support level and entry point, so plan accordingly. if you are a value buyer wait for more cuts till S1 and S2. otherwise, you can enter with strict SL which is mentioned on the chart. GOOD STOCK FOR THE LONG RUN ALL THE BEST! indicators HV=14 RSI=52 educational purpose only!
NSE:BHARTIARTLLong
by SHEHBAZ_KHAN
btc going to drop box 12.6k - 9kthe hidden bearish divergence is a signal that there will be a downtrend continuation. daily negative divergence is a confirmation that uptrend is finished. price dropping below the 200ma of weekly is a sign price is moving towards the downside. a close below 23.3k the daily 200ma will confirm price will drop toward the previous low of 15.5k. most likely this 15.5k low will not hold and we will create a new lower low. a new lower low in price and a higher and high in oscillators, be it monthly chart, weekly chart and daily chart. this will give us a signal the start of real bullrun.. key level to note 23,3k 15.5k, 12.6k and 8.9k
BITSTAMP:BTCUSDShort
by Bro-of-Ced-Rich
7
Bitcoin Bears In TroubleHello Traders, As you can see in the chart, at this moment we have Bitcoin facing local resistance, everybody is opening short positions here, so very likely to see a breakout. You can clearly see an RSI Bullish Divergence in the Chart, this is a very strong signal that usually tells the end of a trend. If we see a weekly close over 18000$ there is high probability for Bitcoin to reach Major Resistance that is the Neckline of the Double Top pattern printed in the All Time High 30000$. This level acts very often as a magnet and there is usually high probability for the price to reach it again. So if we see a weekly close over 18000$ Buy Setup with stop loss at 16800$ and with targets 21000$ 25000$ and 30000$. I you agree with me a boost is much appreciated and If you have questions or you want to share your feedback I will be glad to answer in the comments.
Long
by piccard54
4
HBAR Bottoming HereRSI trending up during the entire falling wedge, it bottomed as the wedge started, and then moved above 30 at its bottom. Wedge broke out, price fell back to weekly support near the same bottom. So, we have bullish divergence b/w RSI and price, a bullish falling wedge that broke out but hasn't risen yet. Price fell back to weekly support a second time, potential double-bottom. Finally, price is moving within its tightest range on the daily in its entire history. Could we see a final strong drop before it moves up? Yes, but it looks good and ready to at least make a move into the first area of resistance, and back into the 200s. I think a larger move is in store, however. Let's see. See my other post on HBAR/USD in the related ideas below. I think HBAR wants to move back into the middle of weekly resistance vs. USD (around 21-31 cents)
Long
by dudebruhwhoa
📊 3 Types Of DivergenceRSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and exaggerated divergences. 📍Regular Divergence: Regular divergence occurs when the price and the RSI indicator move in opposite directions. There are two types of regular divergences: bullish and bearish. 📍Hidden Divergence: Hidden divergence refers to a situation where the price and the RSI move in the same direction, but the RSI signals a potential trend continuation rather than a reversal. 📍Exaggerated Divergence: Exaggerated divergence is a type of divergence where the RSI signal extends beyond the typical overbought or oversold levels. It suggests that the price is showing extreme momentum and could potentially experience a significant reversal. In summary, regular, hidden, and exaggerated divergences in RSI analysis provide traders with valuable insights into potential trend reversals and continuations. By understanding these divergences, traders can make more informed decisions regarding their trading strategies and positions in the market. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
BTCUSD: Needs Breakout Before PumpToday's relief rally to $28,500 needs confirmation on both sides before we can see the broader picture. BTCUSD is currently making lower highs in a distinctive consolidation pattern, with tremendous support at $26,600 and multiple (failed) attempts to create higher highs. Here are some of my observations for both the bulls and the bears and I'll leave it for you guys to discuss in the comments. For the Bears: We need a lower high on the RSI before we can label this as a rejection off the red resistance line. A fall below $26,600 would make this rally a classic head and shoulders pattern, in which the price could potentially fall through the liquidity zone after its parabolic rise earlier this year. For the Bulls: The RSI has consistently been making higher lows since March 10th. This pattern is similar to the higher lows pattern that preceded January's liquidity pump after the FTX fallout, where BTCUSD rapidly rose up to meet the pre-fallout price levels. We would need a strong break through the red resistance line and a higher high to confirm that a macro rally has actually begun. My verdict: if a pump to $29,000 or $30,000 is coming, I don't think it is in today's rally. The RSI has risen too quickly when compared to previous macro rallies, and the red structural resistance hasn't been broken through. Rather, I believe today was an influx of capital because a) the opening on Hong Kong / China to crypto once again and b) the tentative debt ceiling agreement reached by the US Congress. Be sure to keep an eye on the red resistance line, and also the volume profile at about 29K. I will enter long or enter short depending on future price action and confirmation, but for now I am neutral.
INDEX:BTCUSD
by wbburgin