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
Rsidivergence
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.
BTCUSDTHi guys
For Bitcoin, if the short-term uptrend line remains intact, the possibility of a continuation of the uptrend is strengthened.
Due to the issued negative divergence and price compression in the upward trend, the weight of a downward-corrective trend is currently high.
What do you think?
COIN - Turning Around (shake out complete)Saw COIN looking toppy and it played out perfectly- the crypto rally isn’t over yet though and COIN is one of the better proxy plays for capturing the bullish price action we’re in crypto. Short off the top layer off nicely but the RSI is indicating that crypto nor COIN upside is done. The bullish divergence seen in the RSI should provide some decent upside at least in the short term.
OM - SHORT opportunity | RSI Divergence#OM/USDT #Analysis
Description
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+ I'm seeing clear RSI divergence pointing towards bearish price trend for the OM/USDT
+ Also the chart looks like the price has reached double top pattern which is a bearish pattern.
+ Overall there is a short trade opportunity if we trade carefully.
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VectorAlgo Trade Details
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Entry Price: 0.3056
Stop Loss: 0.3802
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Target 1: 0.26770
Target 2: 0.24950
Target 3: 0.22281
Target 4: 0.17431
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Timeframe: 1D
Capital: 1-2% of trading capital
Leverage: 5x
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Enhance, Trade, Grow
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Feel free to share your thoughts and insights.
Don't forget to like and follow us for more trading ideas and discussions.
Best Regards,
VectorAlgo
Long on GBPUSDThis week, I'm feeling bullish on GBPUSD, and here's why:
1. Weaker Bullish Trend on Daily Chart: Although the bullish trend on the daily chart is weaker, the recent violation of previous resistance suggests potential upward momentum.
2. RSI Divergence on 1-hourly Chart: The presence of RSI Divergence on the 1-hourly chart indicates a possible reversal or continuation of the bullish trend.
Given these factors, I'm patiently waiting for a buying opportunity at 1.2730, where I'll enter a long position on GBPUSD.
What are your thoughts on GBPUSD this week? Share your trade plans and insights below!
Wishing everyone profitable trades ahead!
Happy Trading!
Long on EURJPY with CautionThis week, I'm taking a long position on EURJPY based on the 4-hourly chart. While some may see it as a Bullish Gartley pattern with a warning sign, others may interpret it differently, perhaps as a Bullish Gartley on PEZ or a key support level.
My Trade Plan on EURJPY
1. Long position initiated based on the 4-hourly chart.
2. Watching closely for any violation of 161.23, which could prompt a reevaluation.
3. Awaiting the market to hit the first target.
Share your thoughts and trade plans for EURJPY. How are you interpreting the pattern?
Let's continue the discussion!
Next Nears All-Time High: Key Levels to WatchThe cryptocurrency Next is on the verge of breaking its all-time high (ATH) of $0.41390 on the weekly chart. If the price breaks above this resistance level, it could signal further gains for the token. However, if the price fails to break through this level, it could find support at $0.34618, the next key level is $0.31143.
Technical Analysis:
Resistance: $0.41390
Support: $0.34618
Relative Strength Index (RSI): 65
Moving Average Convergence Divergence (MACD): Bullish
Volume Analysis:
The volume of Next has been increasing steadily over the past few weeks, which is a bullish sign. This suggests that there is strong buying pressure behind the token.
Price Consolidation:
The price is currently in a small consolidation range. However, since the overall trend is bullish, there is a good chance that the price will break out of this range and continue its upward movement. The next support level is at $0.31143.
RSI Divergence:
There is a bullish divergence between the price and the RSI indicator. The price has made a new high, but the RSI has not. This suggests that the upward momentum is still strong and that the price is likely to continue to rise.
Conclusion:
The technical indicators for Next are bullish, suggesting that the price could continue to rise in the near future.
The information provided in this article is not intended as financial advice. Please do your own research before making any investment decisions.
RSI Divergence and Bearish Shark Pattern Combo TradeToday, let's delve into an intriguing setup on GBPJPY that combines a Weekly Chart RSI Divergence with a 1-hourly Bearish Shark Pattern:
1. Weekly Chart RSI Divergence:
- Observe the RSI Divergence on the Weekly Chart, signaling a potential weakening of the bullish trend.
- This divergence might serve as a precursor to a reversal or retracement.
2. 1-hourly Bearish Shark Pattern at 190.72:
- Look for a shorting opportunity as the Bearish Shark Pattern completes at 190.72 on the 1-hourly chart.
- Engaging in a short position aligns with the potential bearish sentiment suggested by the RSI Divergence.
This combo trade approach involves using higher timeframes for trend analysis (Weekly RSI Divergence) and pinpointing a precise entry with a harmonic pattern on a lower timeframe (1-hourly Bearish Shark).
Feel free to share your thoughts and trade plans for GBPJPY in the comments below. For a visual representation, refer to the chart link provided.
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
GRTUSDT SHORT POSITIONThe price has successfully completed a three-drive pattern, and concurrently, there is a noticeable formation of a rising wedge pattern and I shouldn't forget to mention that the strength of each new upward wave has weakened compared to its previous wave. Additionally, the confirmation of a bearish movement is evident through the observed RSI divergence.
please follow and support for more
TQQQ Technical Analysis - Breakout and Key LevelsTechnical Breakout:
On November 13, 2023, NASDAQ:TQQQ experienced a significant structural shift with the breach of the $40 resistance level. The subsequent bull run in the tech sector propelled NASDAQ:TQQQ to a peak of $61.22 on February 12, 2024.
Fibonacci Retracement:
After reaching the peak of $61.22 on February 12, 2024, NASDAQ:TQQQ made an attempt to pull back, targeting the 0.618 Fibonacci level at $53.18. However, the retracement was not sustained, and NASDAQ:TQQQ returned to the previous high of $61.22 on February 23rd.
Current Situation:
As we await the market open on Monday, NASDAQ:TQQQ stands at a crucial juncture following the recent retest of $61.22.
RSI Divergence:
Since January 24th, we've observed RSI divergence, indicating a discrepancy between the price action and the strength of the trend. This could be a crucial signal, suggesting a potential shift in momentum that traders should closely monitor.
Upcoming Events :
This week brings important economic indicators:
Monday: Japan Inflation Rate
Tuesday: GfK Consumer Confidence and USA Durable Goods Orders
Wednesday: USA GDP
Thursday: USA PCE and Personal Spending
Friday: ISM Manufacturing
Market Expectations:
Anticipations are focused on the USA GDP, expected to perform worse than forecasted . This could influence market sentiment and potentially impact NASDAQ:TQQQ 's performance.
Forecast:
Given the current technical setup, RSI divergence and the upcoming economic events, there is a likelihood that NASDAQ:TQQQ could move towards the 0.5 Fibonacci level of $50.69 by Friday, March 1st. Traders should closely monitor developments and be prepared for potential volatility.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own research and consider risk factors before making any investment decisions.
MATICUSDTHi guys
I consider the above scenario valid only under the condition of maintaining the support range of $0.6884.
Be careful, we have network upgrade for February 6.
What do you think?
ADAUSDTAm I the only one who finds it attractive?
Or do you think it's attractive too!!?
My opinion for the rise is strengthened only by the consumption of the $0.5402 resistance range.
The $0.4745 range is low risk. But we have to see if the resistance range will be broken first
what do you think!?
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.
EURGBP Looking Bullish with UK Recession-0.6% MoM CPI and now technical recession with 0.3 shrinking on quarterly basis. UK data this week was very weak but recently and EURGBP trying to find support from 0.85.
The weak data, bulish RSI divergence and the 0.85 support all create a buying oppurtunity. 0.8560 could be the trigger for upward moves. Below 0.85 however will change the positive outlook for the short term as the main theme is still a decending triangle so far.
BTCUSDT📌 To complete the upward trend, it is necessary to see the $33,000 area again.
🔍 If we look carefully, we probably have a head and shoulders pattern.
▪️ The areas that we have identified are strong for supply and from here the possibility that a higher ceiling will be set for us is very, very weak
What do you think?
Awaiting Confirmation for Shorting Opportunity Traders,Despite a strong bullish candle, the presence of a Bearish Shark Pattern retest on USDJPY is intriguing.
However, the trader advocates waiting for further confirmation to engage in a shorting opportunity on USDJPY, treating it as a retracement trade.
What's your take on the potential trade for USDJPY?
EURUSD 4H potential Double bottomThe EURUSD on a 4H chart shows a drop down to a strong support range (Orange range) which aligns with the 0.618 Fib. Around those levels, the price started forming a potential double bottom.
For the pattern to be valid, the price needs to go up without dropping below the low points and produce an effective breakout above the neckline range ( Blue range )
Additional confluence: RSI is showing a Divergence
GBPAUD 4H Rising wedge + RSI DivergenceOn this 4H chart for GBPAUD, you can notice that the price is forming a potential Rising wedge. The price is currently hitting a strong Resistance range. The wedge can provide a breakout here or go to a higher level and still provide a valid breakout. Monitor for development around those levels
Additional confluence: Strong RSI Divergence
Gold's Maintenance of Record Levels - Following Trend - TADear Esteemed Members,
Gold holds record levels, as the price is above its moving averages and the upper Bollinger band, indicating a strong bullish trend and a high volatility. The price could update the previous high in a wave y, and reach $2100 soon. RSI, stochastic, and OBV, to confirm the validity and strength of the trend.
Kind Regards,
Ely