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Rsiexhaustion

Short setup on SPX (x2)After the most recent upward move, the SPX shows clear signs of weakness, suggesting a potential short setup. Since mid-July, the SPX has been moving upward and it's now near its all-time high. However, the RSI Exhaustion at the bottom of the chart has significantly declined and hasn't recovered much, establishing a downtrend. This divergence between the price and the RSI Exhaustion is the first major signal of a possible short configuration. Three additional signs support this setup: The RSI Exhaustion shows recent bullish exhaustion (indicated in green), signaling that further price increases are unlikely. The price has formed a top just shy of its all-time high, as identified by the Bottoms Tops Signal indicator. A major level has formed, as indicated by the Levels and Zones indicator. While this level turned into support, it originated as resistance and could well revert back to it should be price start to drop further. Is the bull run over? Only time will tell, but for now, it's crucial to remain patient and always seek confirmation from the indicators.
TVC:SPXShort
by a.b
Short setup on SPXThe SPX has experienced a significant bull run, reaching just below $5700, but is now showing clear signs of weakness, suggesting a potential short setup. Since mid-July, the SPX has been moving sideways and is now nearly flat at its all-time high. However, the RSI Exhaustion at the bottom of the chart has significantly declined and hasn't recovered much, establishing a downtrend. This divergence between the price and the RSI Exhaustion is the first major signal of a possible short configuration. Three additional signs support this setup: The RSI Exhaustion shows bullish exhaustion (indicated in green), signaling that further price increases are unlikely. The price has formed a top at its all-time high, as identified by the Bottoms Tops Signal indicator. A new major resistance level has recently formed, as indicated by the Levels and Zones indicator. While this level could potentially turn into support if the price breaks above it, for now, it remains a resistance, exerting downward pressure on the price. Is the bull run over? Only time will tell, but for now, it's crucial to remain patient and always seek confirmation from the indicators.
TVC:SPXShort
by a.b
Inverse H & S on Weekly SPX Analysis We are nearing an important event tomorrow where we will come to know about Fed funds rates and FOMC guidance for upcoming months. These events are known for creating extreme volatility. We can easily swing up and down 100- 150 points on days like these and set in motion what's to come for the next few months. No matter how big of a volatile move we will see tomorrow in the price action, it will be a small blip on a larger timeframe and that's what we are here to analyze. On weekly Time frame I am looking at this inverse Head and Shoulders pattern. Let's analyze this structure based on RSI indicator. In the main chart we can see that, since the time inverse H & S began to form, the RSI has been trading in a Rising wedge formation which is a bearish pattern. Every time we touch the top edge of the wedge, we have been getting a rejection on RSI and big move down in SPX. In the begenning of the structure and RSI we got huge moves to the downside, but those moves have been getting smaller and smaller both in RSI and Price Action. This is called compression which is followed by explosive moves once the pattern is broken. Last week we again got a rejection from the top edge of the wedge and have begun to move down, I have placed the measurements on the chart about how much we have been dropping every time we touch top edge of the wedge on RSI and based on the patterns in price drop and how much time it took to drop to the lower edge. We can expect a drop of about 5+ % from the current top and reach there in the next 2 to 3 weeks. Now once we have reached there RSI will have to decide whether to bounce back up or finally break the pattern. The break to the downside has descent chances of happening as per the Rising wedge pattern rules where it says the pattern break occurs in last 33% of the structure and it looks like we should be there by end of this month. If it does break below the inverse H & S pattern will fail. The best way to protect you from entering wrong trades : is to never be too sure about any analysis and always consider all possibilities. Following are the possibilities I see with RSI which can make or break the structure: We must monitor all the trendlines in RSI and see what PA is doing, it may not go all the way down and bounce back up from one of the trendlines in the middle. The following are all scenarios I am watching for the movement of RSI. I used a simple but powerful RSI indicator to gain insight on SPX Price action. If you are not familiar with this indicator, or if you have basic understanding but want to fully understand this indicator in detail: You can ago through the post in the links below: I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned and if you like my content and would like to learn from my experience hit like and follow me for getting notified on my trade, market projections and several upcoming tutorials on technical analysis and several technical Indicators. You can also leave a comment and let me know if you want me to analyze any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it. Keep learning and Happy trading All.
OANDA:SPX500USD
by zakoraio
Possible SELL opportunity on CADJPYThe CADJPY pair might offer soon an interesting sell opportunity assuming a trend continuation scenario. After a recent uptrend, the pair is currently moving between a major resistance (downward pressure) and a major support (upward pressure) with the latest move being a significant downtrend. A SELL opportunity might form if: The Breakout Pivotal Bars turn bearish (candles colored in red) in the blue circle at the top The RSI Exhaustion becomes Bullish Exhausted (RSI line gets colored in green) in the blue circle at the bottom (around 50) If instead, the pair starts to consolidate around the current level (moving pretty much sideways), the subsequent scenario might turn to the bullish side. Either way, remember to do your analysis, be patient and always look for confirmation from the indicators.
by a.b
LTCUSDT compressionA breakout opportunity is forming on LTCUSDT. The pair is currently consolidating after the recent downtrend that formed several tops and offered multiple selling opportunities. Price movements are increasingly compressed and will eventually break. The same compression is building in the RSI Exhaustion indicator at the bottom. As of now, the breakout could be either to the upside (trend reversal) or to the downside (trend continuation) so let's just wait and see when the breakout comes. Remember to do your analysis, be patient and always look for confirmation from the indicators.
by a.b
Major downtrend in SPXAfter almost two years of market exuberance due to central banks' unconventional actions, the SPX has recently entered a major downtrend which has just started. The index has just formed a top under a major resistance and its next target is the major support level around 3200. The RSI Exhaustion confirms the same analysis, in fact, there's no evidence of divergence and the indicator is currently "bullish exhausted" meaning that a bull run from here is extremely unlikely. Remember to do your analysis, be patient and always look for confirmation from the indicators.
SP:SPXShort
by a.b
2
SPX looking rather badThe S&P 500 Index looks extremely overextended and a downward movement is likely going forward. Currently, the SPX is in a very similar configuration to the pre-pandemic (late 2019 going into early 2020). Back then the price continued to move higher forming multiple tops while the RSI Exhaustion continued to decrease and stayed mostly bullish exhausted (colored green). As easily predictable, a significant correction took place later on and continued until late March. At that point, the chart had completely reversed showing a rather oversold situation and forming a bottom which gave us the opportunity to reenter for a new bull run. As of today, the SPX is back to a very similar configuration to one year ago: going forward a downward movement is likely. One final note on the supports. There are two major supports that will sustain the price should it start to fall. However, even the highest support is pretty far away from the current price level so there's plenty of room for triggering a downward movement.
SP:SPX
by a.b
11
Breakout opportunity on EURUSDThe EURUSD is currently in a downward channel and two alternative scenarios are possible: The downward channel should signal a further move to the upside. This view is supported by the fact that the pair broke up a similar consolidation in late-May/early-June and the price has increased until early September when it started consolidating. The RSI Exhaustion indicator is also supporting this view. In fact, it is increasing (diverging with the price!) and became bearish exhausted twice (colored red) in the last couple of months. A break to the upside can push the price in the 1.22-1.24 area. On the other hand, the price could continue to consolidate for some time and eventually move down at least until the 1.115 level. In such a case we should expect to see the RSI Exhaustion decreasing, becoming bearsih exhausted (colored red), and eventually becoming oversold as well. Among the two alternatives, the first (breakup) is the one more likely but remember to be patient and always check confirmation from the indicators!
by a.b
A BIG MOVE IS COMING ON EURUSDI usually post 1h charts but I think this weekly chart is very helpful to every FX trader . EURUSD is in consolidation since last May in the 1.155–1.18 area. This situation is the prelude of a breakout and a big impulsive move coming in the second part of 2018 and possibly 2019. The indicators are currently looking good but we need to wait and see the breakout, either up or down. Are you of the same opinion? Feel free to share your feedback below.
by a.b
9
BIG MOVE COMING ON BTCUSDThe BTCUSD is due to a major move soon. The pair has been consolidating to the downside for several months now and it has been significantly squeezing until now. During the last few months, the pair formed Lower Highs and Higher Lows, hence forming a nice pattern that is about to be broken. The Sentiment Index is squeezing which is a great indication that something big is about to happen. The Breakout Pivotal Bars is negative (red candles) so a breakdown seems more likely but we need to wait and see the color of the breakout candle. Either way the price will break, we are prepared and ready to profit from the move.
BITFINEX:BTCUSD
by a.b
9
Breakout opportunity on AUDUSDA breakout opportunity is forming on the AUDUSD. The pair is in a downtrend from a few weeks and has already given three very great sell opportunities. The setup was identical for all the three: • breakdown of price • breakdown of Sentiment Index • opportunities below resistance Right now the breakout could be either to the upside or to the downside so let's just wait and see when the breakout comes. Last but not least, always check confirmation from the indicators!
by a.b
12
HOW TO RIDE TRENDSThis educational idea refers to the last trading idea I published (linked below) and to many more I traded in the past. The chart above shows the BTCUSD going from about 6'500 at the beginning of April up to around 10'000 in early May and all the way back down to about 6'500 in mid-June. This idea shows how it was possible to ride the trend all the way up (4 buy opportunities) and all the way down (4 sell opportunities) with three indicators: the Breakout Pivotal Bars , the Sentiment Index and the Levels and Zones . Here's how they work to identify setups: Breakout Pivotal Bars • For break-ups the candle must be coloured in green. • For break-downs the candle must be coloured in red. • Blue candles mean indecision so either trend continuation or imminent trend reversal. Depending on your strategy it is possible to trade them or not. Sentiment Index Possible situations are: • Breakout (e.g. Bullish Sentiment in case 1 or Bearish Sentiment in case 8) • Divergence with the price (Bullish Sentiment in case 8) Levels and Zones Gives a reference in real-time to where the most significant levels and their corresponding long/short zones are. Let's see the 8 trading opportunities: 1. Break-up of consolidation (blue candle) + Break-up of Bullish Sentiment + Above Support -> GOOD OPPORTUNITY 2. Break-up of consolidation (green candle) + Break-up of Bullish Sentiment + Above Support -> GOOD OPPORTUNITY 3. Break-up of consolidation (blue candle) + Break-up of Bullish Sentiment + No Support nearby -> VALID OPPORTUNITY but pay attention 4. Break-up of consolidation (green candle) + Break-up of Bullish Sentiment + Resistance Above -> VALID OPPORTUNITY but pay attention 5. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment (divergence in Bullish Sentiment) + Below Resistance -> GOOD OPPORTUNITY 6. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is pretty far! -> GOOD OPPORTUNITY 7. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is pretty far! -> GOOD OPPORTUNITY 8. Break-down of consolidation (red candle) + Break-down of Bearish Sentiment + Support is still pretty far! -> GOOD OPPORTUNITY
BITFINEX:BTCUSDEducation
by a.b
36
ANTICIPATING THE MARKETThis idea shows how the Sentiment Index indicator clearly anticipates big shifts in the Market. The first situation shows the EURUSD consolidating between late 2016 and spring 2017 – the consolidation was characterized by a consistent decline in the Bearish Sentiment which ultimately led to a strong uptrend until early 2018 (1500+ pips movement). The second situation shows the EURUSD in an opposite setup – a sligthly shorter consolidation charaterized by a decline in the Bullish Sentiment and a consequent breakdown of the pair.
Education
by a.b
27
Predicting market moves with JUST ONE INDICATORThis idea shows how easy it was to identify a massive opportunity on BTCUSD with the Levels and Zones indicator. Basically, after days of sideways movement, the pressure started to build up and ultimately a massive explosion took place! First, the Resistance Level moved significantly down (hence pushing price lower), then the Support Level made its move up (hence pushing price higher). Give it a few more time for the pressure to increase further (price is forced to move into a tight channel) and then the explosion takes place. You can find a similar setup before most of the major impulsive movements across any asset and timeframe. First, pressure builds up then, the explosion takes place!
BITFINEX:BTCUSDEducation
by a.b
41