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Nifty RSI Super-Heated to 83% - Crash Coming ????On the Quarterly chart - the RSI indicator on Nifty is showing a value of 83% or more indicating it's in Over Bought Zone Back in Jan 2008, the RSI went to a high of 87% and Nifty subsequently crashed -52% from the Highs. After 16 years, the RSI on Nifty is climbing up beyond the 83% mark which indicates "Danger of a Correction" according to many Expert Analysts from Media Channels, Twitter and Telegram Please forward the below analysis to All those Pessimistic Technical Super-Zeroes -------------------------------------------------------------------------------------------------------------------- I say - What a "Ridiculous" Comparison of 2008 vs 2024??? The entire Technology world looks toward India as a Hub of Technical Brains, but those brains are just filled with Age-old Folklores and Pessimism. Technical Analysis is NOT a Geometry class to connect 2 dots from 20-30 years ago and say we had the similar situation back then and there was a Crash and the same thing will Repeat now. The entire market Dynamics has changed a lot. 1. First of all what's an Indicator? An Indicator is nothing but a Human written Algorithm (A Script) which consumes Buyers & Sellers Activity and volume of trades historically and does some simple "math". How does this Dumb Number Crunching algorithm understand external factors? 2. What Really Caused the fall in 2008? Think again closely - The 2008 crash was a Global Catastrophe caused by the Massive Conspiracy and Bankruptcy of Lehman "Buggers" (Brothers) in US which had a world wide impact. For those Technical Pundits who believe 2008 fall was due to RSI - read the Analysis below fully In this image - there is a comparison of Nasdaq Vs Nifty 50 between 2000 to 2008 and the RSI line is that of Nasdaq (not Nifty) In 2000, the market fell so badly in US and the RSI was around 98%. But in 2008, look at the RSI - it was hovering around the Healthy 60% mark which is treated as the Golden Levels of "Fresh Entry" by most technical analysts But US & the entire world crashed in 2008 due to Lehman Brothers issue - As the subprime mortgages underlying these securities began to default at alarming rates, investor confidence plummeted leading to a loss in trust in Lehman Brothers. Unable to fully recover all of their losses, Lehman Brothers were forced to file for bankruptcy Nifty was trading at RSI 90% back then, but US was trading at 60% RSI. So the fall here is NOT because of Indian RSI - but due to a Global event. RSI is like a Speedometer - it just indicates that you are driving at 80 / 100 and in every vehicle speedometer - there will be a RED zone which indicates Dangerous driving conditions. Does not mean, the Engine will fail. It just says that driving so fast is not safe. We should learn to do a Full Analysis - not just a Half-baked one connecting some dots with something else claiming Technical superiority Nothing is going to happen to US especially NOTHING will every happen to Indian Market until Apr 2028 where Nifty will face a 34 year long Parallel Channel Resistance as indicated in the main chart Disclaimer: Stocks-n-Trends is NOT registered with SEBI. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions. If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments -Team Stocks-n-Trends
NSE:NIFTYLong
by Stocks-n-Trends
Head & Shoulder pattern in Auto Axles. Auto Axles has been corrected from 2449 to 1860 by forming Lower High and Lower Lows. Price has been reverted from supply zone (1730 - 1800) on weekly time frame. It has formed higher high recently showing possibility of trend reversal and has also formed Head & Shoulder pattern on daily time frame and current price is near to neck line of H&S pattern, Having possibility for uptrend move. Share is trading below 200 D SMA. CMP - 1866 RSI - 51 Entry price - 1885 Target price - 2070 (around 10%) SL - 1790 (5%) Disclaimer - This is for education purpose only. I am not a SEBI registered analyst. Take advise from your financial advisor before investing.
NSE:AUTOAXLESLong
by jeet20
RSI Indicator LIES! Untold Truth About RSI! The Relative Strength Index (RSI) is a classic technical indicator that is applied to identify the overbought and oversold states of the market. While the RSI looks simple to use, there is one important element in it that many traders forget about: it's a lagging indicator. This means it reacts to past price movements rather than predicting future ones. This inherent lag can sometimes mislead traders, particularly when the markets are volatile or trade in a strong bullish/bearish trend. In this article, we will discuss the situations when RSI indicator will lie to you. We will go through the instances when the indicator should not be relied and not used on, and I will explain to you the best strategy to apply RSI. Relative Strength Index analyzes the price movements over a specific time period and displays a score between 0 and 100. Generally, an RSI above 70 suggests an overbought condition, while an RSI below 30 suggests an oversold condition. By itself, the overbought and overbought conditions give poor signals, simply because the market may remain in these conditions for a substantial period of time. Take a look at a price action on GBPCHF. After the indicator showed the oversold condition, the pair dropped 150 pips lower before the reversal initiated. So as an extra confirmation , traders prefer to look for RSI divergence - the situation when the price action and indicator move in the opposite direction. Above is the example of RSI divergence: Crude Oil formed a sequence of higher highs, while the indicator formed a higher high with a consequent lower high. That confirmed the overbought state of the market, and a bearish reversal followed. However, only few knows that even a divergence will provide accurate signals only in some particular instances. When you identified RSI divergence, make sure that it happened after a test of an important key level. Historical structures increase the probability that the RSI divergence will accurately indicate the reversal. Above is the example how RSI divergence gave a false signal on USDCAD. However, the divergence that followed after a test of a key level, gave a strong bearish signal. There are much better situations when RSI can be applied, but we will discuss later on, for now, the main conclusion is that RSI Divergence beyond key levels most of the time will provide low accuracy signals. But there is one particular case, when RSI divergence will give the worst, the most terrible signal. In very rare situations, the market may trade in a strong bullish trend, in the uncharted territory, where there are no historical price levels. In such cases, RSI bullish divergence will constantly lie , making retail traders short constantly and lose their money. Here is what happens with Gold on a daily. The market is trading in the uncharted territory, updated the All-Time Highs daily. Even though there is a clear overbought state and a divergence, the market keeps growing. Only few knows, however, that even though RSI is considered to be a reversal, counter trend indicator, it can be applied for trend following trading. On a daily time frame, after the price sets a new high, wait for a pullback to a key horizontal support. Your bullish signal, will be a bearish divergence on an hourly time frame. Here is how the price retested a support based on a previous ATH on Gold. After it approached a broken structure, we see a confirmed bearish divergence. That gives a perfect trend-following signal to buy the market. A strong bullish rally followed then. RSI indicator is a very powerful tool, that many traders apply incorrectly. When the market is trading in a strong trend, this indicator can be perfectly applied for following the trend, not going against that. I hope that the cases that I described will help you not lose money, trading with Relative Strength Index. ❤️Please, support my work with like, thank you!❤️
Editors' picks
Education
by VasilyTrader
34
A better DCA strategy that you need to start using. We all know about Dollar Cost Averaging positions over time. However allow me to introduce you to a weighted DCA strategy that gets you a tighter average and retains additional capital over time ready to be allocated at "better prices". First take your monthly $ allocation to your desired Ticker *For this example we use $400 added monthly and TSLA as the Ticker We break the monthly add into 1/4ths So if we have $400 That = 4 lots of $100 dollars. Set an Auto buy to $100 (as well as auto div reinvest if there is one) *This feels like we're leaving too much on the table and not invested, but this is what gives this strategy the sauce. *We use the Daily chart over a year timeframe for consistency. If RSI is >= 60 we leave the auto buy of $100 (1/4) as is and save the remaining 3/4s to allocate at another date. If RSI is >= 50 -60 we buy another 1/4 ($100) (totaling $200 or 2/4s of monthly allocation) If RSI is <= 30 we allocate the other 3/4s ( $300 ) for a full 4/4s monthly allocation _We will also @ RSI <= 30 allocate 1/4 of all saved monthly allocations As seen in the Chart this occurs in Feb of 2024 where we buy $400 ($100 auto buy + $300 manual) and from $1300 reserves we've accumulated we use $325 to purchase additional shares. This leaves us in great shape, we have a much tighter avg while also maintaining funds ready to specifically purchase more shares at a better price without the fomo. The monthly breakdown of DCA'd shares looks like this Shares DCA'd Jul .35 Aug .789 Sep .794 Oct .773 Nov 1.94 Dec .84 Jan .84 Feb 3.90 mar 1.06 Apr 1.225 may 1.109 Jun 1.13 14.75 shares over 1 year Total Invest $3025 AVG/Share $205 (9% better Avg than regular DCA) W/ $1775 available for RSI < 30 situations Any questions/ opinions welcomed. Good Luck out there.
NASDAQ:TSLALong
by AngryBuhda
[BTCUSD] - EXPANSION! 🔸in daily chart can notice a power of 3 (Accumulation ,, manipulation ,, Expansion)" 🔸we are in stage 3 (expansion) accordibg to my vision.. that matching so likely with RSI indicator...(breaking out multi-month trendline) 🔸must be considerd that the price breaking out a POC line with large green candle too 🔸price now testing the 0.618 fib (golden level) 🔸so that... need a daily close above the golden level and u will watch new ATH for BTC. appreciating for supporting us with ur like and hit "follow" for more updates🎯
BITSTAMP:BTCUSDLong
by ceciliones
4
BITCOIN Bull Penannt BREAKOUT! Here's Bull / Bear Scenario NextHuge Bull Pennant BREAKOUT today for #Bitcoin ! Massive VOLUME coming with the move and price closed above 50MA The RSI looks GREAT and I'm leaning Bullish, but here's a Bull & Bear scenario for the next couple months CRYPTOCAP:BTC coming up to critical resistance at $67,3 If we can close a few days above that level we'll range ~$69,6 Then retest $64,6 once more... That will be another critical level to smash past Another few weeks of range and we blastoff to $80k mid-Summer 👑
BITSTAMP:BTCUSDLong
by jonnieking
CRYPTOHOPPER WEBHOOK PEPEUSDT 45MIN RSI WITH CONDITIONS STRATEGYRSI Strategy with EMA and VWMA Conditions Objective This trading strategy leverages the Relative Strength Index (RSI) in combination with the Exponential Moving Average (EMA) and the Volume Weighted Moving Average (VWMA) to identify potential buy and sell signals for trading cryptocurrencies on the Cryptohopper platform. How it works: Buy Signal: A buy signal is generated when the RSI crosses above the user-defined lower threshold and the EMA (9) is above the VWMA (20). Sell Signal: A sell signal is generated when the RSI crosses below the user-defined upper threshold. Indicators Used: RSI: A momentum oscillator that measures the speed and change of price movements. EMA (9 period): A moving average that places a greater weight and significance on the most recent data points. VWMA (20 period): An average that also accounts for volume, giving more weight to periods with higher volume. How to Set Up Alerts for Webhooks: To create alerts that can be sent as webhooks to Cryptohopper, follow these steps: Apply the script to your TradingView chart. Click on the 'Alerts' icon on the right-hand side toolbar. Choose the script from the dropdown in the 'Condition' field. You will see two options: "Buy Alert for Webhooks" and "Sell Alert for Webhooks". Select the desired alert condition. In the 'Options' section, set the alert action to 'Webhook URL'. Enter your Cryptohopper webhook URL into the 'Webhook URL' field. Configure the alert message according to the format required by Cryptohopper. Save the alert. How Alerts Are Generated: The script will continuously monitor the chart based on the conditions you've set. When a condition for either a buy or sell signal is met, TradingView will trigger the alert. If set up for a webhook, TradingView will send an HTTP request to the specified webhook URL with the message payload. Disclaimer: This script is for educational purposes and should not be taken as financial advice. Trading cryptocurrencies carries a high level of risk, and you should do your own research or consult a financial advisor before making any investment decisions.
Long
by PPonBIN
Detection of Peaks and ValleysExplanation: Detection of Peaks and Valleys: Initially, the RSI (Relative Strength Index) is calculated based on a selected price source. Then, any change in RSI that exceeds the specified percentage threshold is considered a peak or a valley point. These points are visually represented on the chart with green and red triangles. Identification of Divergences: Differences between peak and valley points are examined. A negative divergence occurs when peak values increase on the price chart while decreasing on the indicator chart. Conversely, a positive divergence occurs when valley values decrease on the price chart while increasing on the indicator chart. Generation of Buy and Sell Signals: When a negative divergence is detected, a sell position is opened and held until the specified take profit level is reached. Similarly, when a positive divergence is detected, a buy position is opened and held until the specified take profit level is reached. This strategy utilizes the RSI indicator to assess the momentum and strength of price movements and generates buy and sell signals based on the detection of divergences. Parameters such as take profit levels and others can be adjusted by the user. 03:17:46 'Divergence Strategy 1' saved. 03:17:46 Compiling... 03:17:47 Compiled. 03:17:47 Added to chart.
Education
by AI_trade_bots
2
Paychex (PAYX) Revenue miss... Is this the end?Hi guys! As always, im looking for macro trends/ signals and critical movements/ developments in the markets. What caught my eye is PAYX. Today it gets the focus as it had Q3 revenue miss and its down 6% pre-market. With panic coming in, ill go over technical developments and the big picture. Lets jump in. We are in the 1 week timeframe (note this weeks candle has not yet printed and can current develops can change throughout the week). Currently, we are range bound between $100.00 and $133.00. After the large bull run it had looking left. It is now in a period of accumulation/ consolidation in my opinion. This pattern started December 2021. So its a long-term pattern. Which will take alot to break out of. Breaking to upside would continue the bull run to new all-time highs. Getting there though, will take time. And we must break other obstacles first. First thing to break is the Short-term resistance trendline. 2nd thing to break is the upsloping channel highlighted, which is a intermediate trend. If we get rejected from any of these obstacles, we can also continue down to test the lower border of the range. Our first test of support would be the lower border of the sloping channel. We must also watch VOLUME -> increase in volume would help us with breaking this obstacles and eventually getting us to the top of the range and an eventual breakout. Watch also the 2 indicators i put up. MACD -> We need a bullish cross with the lines moving ABOVE black horizontal trendline to form a higher high. This would help the case of breaking trends, moving above the consolidation range and to new highs. If we get a bearish cross we can retest the support line of the ascending channel and lower range of the consolidation zone. RSI - A HIgher high print is needed to continue upward and eventually out of the consolidation range. Notice however the resistance ABOVE us, depicted by the trendlines. A bearish case is printing a Lower low, doing so may bring us down to the black support trendline. Depending on how low the RSI goes, will determine how far down we go as well. __________________________________________________________________________________ Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. Stay tuned for more updates on PAYX in the near future. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
NASDAQ:PAYX
by SafofAllTrades
Krispy Cream Donut Weekly God Candle Has me lookingHi guys. Always on the lookout for major changes/shifts or Macro signals. Yesterdays 40% increase in Krispy Cream Donuts, has me taking a look into this one. This analysis is on the 1 week. Note, the current candle is not yet confirmed. Weekly close is obviously on fridays. I have highlighted 2 zones. COnsolidation range and a Supply zone. We do need to pay attention to these 2 ranges. BEcause atleast from previous history the supply zone is a resistance zone and thus a sell area. We would need decisive candle closes ABOVE for multi weeks for me to gain confidence that it has flipped to Demand or Support. Same goes for breaking out of the consolidation range. More info is needed such as confirmation. But nevertheless, What had me looking DNUT's way, was candle moving past the major resistance trendline that has haunted us since the stock being traded publically. I would like to note on the weekly timeframe, confirmations have not come in yet, and until proven otherwise it can be a fakeout and can always come back into the consolidation zone. AGAIN, End of week will give us better information. But it does not take away the fact that DNUT is moving. And atleast for now, DEMAND exists. VOLUME needs to follow with continued increase. Things to note in our indicators: RSI, breaking a major trend by signaling a higher high. But again end of week will clarify this. If it prints, i see it as a positive sign. STOCH RSI - crossing bullish with is almost above 20 lvl. This indicates possibility of momentum coming in to support an uptrend. MACD - Has Bullish cross, however we need to see whether or not we can get ABOVE 0 lvl. This would indicate a high probability for a sustainable uptrend. Being that this weeks candle has not yet closed. It is absolutely important to continue to observe. But DNUT has made it to my watchlist for sure. Is Krispy Cream Donuts, the Donut for me and you? Well time will tell. LOL. __________________________________________________________________________________ Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again. Stay tuned for more updates on MINAUSD in the near future. If you have any questions, do reach out. Thank you again. DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
NASDAQ:DNUTLong
by SafofAllTrades
20
Price overextension: misconceptions and common mistakesPrice overextension remains a widely misunderstood concept in trading, causing both novice and seasoned traders to make errors in their decision-making. This misinterpretation often leads to placing trades in the wrong direction or, equally detrimental, overlooking profitable opportunities. In essence, price overextension signifies that the market has undergone a rapid and excessive movement in one direction. Such movements are often perceived as unsustainable. Numerous indicators, such as Stochastic, RSI, Bollinger Bands and many other, attempt to identify such "abnormal" price movements so traders could capitalize on them. Despite variations in statistical methods and calculations, their common goal is to detect instances where price went or down too much and is likely to reverse. In this discussion, I will use Relative-Strength-Index (RSI), a popular indicator, to convey my perspective on price overextension. While some traders argue for customization, the elusive question of "how" often remains unanswered. From my experience, there are no universally perfect settings that consistently yield optimal results. I’ll draw my examples from the recent SPY bar chart (February 2024). The first misconception The first misconception is that if price is overextended it is time to immediately start looking for a trade in the opposite direction. The most important phrase here is “start looking”. Many beginners misinterpret this as an invitation to commence trading, leading to the premature initiation of short positions during perceived market "overextension" and vice versa. So, the first and foremost important advice is to never try guessing top/bottom based on one indicator or gut feeling. Simple as it seems I remember many times breaking this rule myself because the temptation was too strong. It rarely ended up well. On the graph, I've highlighted three recent instances where the RSI exceeded 70 (indicating overbought conditions). What stands out is that, following each occurrence, the price surged significantly before consolidation set in, inflicting losses upon short traders. Even experienced traders, who look for confluence of signals, may fall into this trap. In the first two examples, bearish candlestick patterns failed to prevent subsequent price increases. Most likely, those candles were “created” by weak hands traders, who tried to short market, while it was actually controlled by strong buyers. These instances could have been avoided by considering the daily graph, revealing a robust bullish context – price was in an uptrend, one-time-framing up on weekly. There were couple of moments when bears gained short term control (Tuesdays 13th and 20th) but they never could take the previous week low; bulls always confirmed their control. The second advice is to avoid trading against higher level context. While sometimes those trades might work the result is usually mediocre and most of the times you’ll simply lose. If you really wish to trade against context you need to construct a solid dossier of evidence, supporting your trade. The second misconception What is the second misconception? It is that when price overextended it is not time to go with the market. In this scenario, traders refrain from initiating long trades after RSI indicates overbought conditions, potentially causing them to miss profitable opportunities. It might not hurt your account but who likes missing good opportunities? Surprisingly, seizing these trades correctly is not much harder than any other trade. It simply requires prudence and discipline and getting rid-off cognitive biases. For example, in the second example on the graph a trader could win up to 1% if he played off gap-up open after seeing that the new price has found acceptance. Conclusion It is possible to build a profitable strategy that relies on “price overextension” concept. However, it demands more than a cursory examination of a single indicator and adherence to textbook candle patterns. Personally, I reached a point where I entirely abandoned the use of RSI and similar tools because, instead of providing clarity, they seemed to cloud my thinking. Opting for a more effective approach involves keenly observing actual market behavior, which often defies conventional expectations. Study of high-level contexts, understanding key levels, and discerning confluence in price action signals on lower timeframes consistently prove invaluable. This method helps steer clear of common pitfalls and contributes to enhancing overall trading results.
AMEX:SPYEducation
by hermes_trisme
Trading Strategies with the Relative Strength IndexTrading Strategies with the Relative Strength Index The Relative Strength Index (RSI) is a cornerstone in the world of technical analysis, assisting traders in capitalising on momentum-based opportunities. This article delves into three sophisticated RSI strategies, shedding light on how to deploy the indicator in different trading scenarios. RSI in Trading Explained The Relative Strength Index is a momentum oscillator that measures the velocity and change of price movements. Developed by J. Welles Wilder in 1978, the RSI oscillates between zero and 100. Typically, and by default, it is set at a 14-period time frame, meaning it computes momentum based on the last 14 price bars, whether they're days, hours, or minutes, depending on the chart. The RSI is primarily used to identify overbought or oversold conditions. An RSI value above 70 suggests that an asset may be overbought, indicating a potential sell signal. Conversely, an RSI value below 30 signifies an oversold condition, suggesting a possible buying opportunity. Moreover, sustained moves above the 50 mark indicate bullishness, while the index being below 50 is typically bearish. While many traders use these basic thresholds, the RSI is versatile and can be combined with other indicators and strategies for more comprehensive trading setups. To get started with the RSI and the strategies in this article, head over to FXOpen’s free TickTrader platform. There, you’ll find each of the tools discussed waiting for you. Best RSI Indicator Settings The default setting for the RSI is a 14-period calculation, which works well for capturing short-to-medium-term price movements. However, traders can adjust this to suit their trading style. For those looking for more frequent trading opportunities, a shorter period like 7 or 9 can be used to generate quicker signals. Conversely, for swing traders or investors interested in longer-term trends, a setting of 21 or even 28 periods could be more appropriate. It's important to note that shortening the RSI period will make it more sensitive, increasing the frequency of signals, while lengthening it will smooth out the data and produce fewer but potentially more reliable signals. RSI With Hull Moving Average Confirmation Incorporating Hull Moving Averages (HMA) into an RSI-based strategy offers traders an additional layer of confirmation for entry and exit points. In this approach, traders can use both a 9-period and a 21-period HMA alongside an RSI that has crossed below the 70 level for a bearish scenario or above the 30 level for a bullish scenario. Entry Traders can look for a 9-period HMA and 21-period HMA crossover within a few bars of the RSI crossing the designated overbought or oversold level. When an HMA with a shorter period crosses above the HMA with a longer period, it’s usually considered a buy signal and vice versa. Stop Loss Stop losses may be positioned above or below a nearby swing point. This provides a buffer against sudden market reversals while keeping risk manageable. Take Profit Profits are typically taken at an identified support or resistance level. Another option is to exit when the RSI crosses into the opposite extreme zone (from overbought to oversold or vice versa). A subsequent HMA crossover against the trade direction can also serve as a signal for profit-taking. The advantage of using Hull Moving Averages for confirmation is their responsiveness to price changes without the noise often associated with other types of moving averages. This strategy aims to capitalise on more robust signals by combining the trend-following characteristics of HMA with the momentum signals of the RSI. Stochastic and RSI Indicator Strategy In this RSI trading strategy, the focus is on combining the RSI with the Stochastic Oscillator for enhanced market insight. Both are momentum indicators, but they evaluate different aspects of price action, making them complementary when used together. Entry Traders can consider entering a trade when the RSI is above 50 for a bullish scenario or below 50 for a bearish one. The entry signal may be further confirmed when the Stochastic Oscillator's %K crosses the %D line in the same direction as the RSI reading but below 80 and above 20. Stop Loss Stop losses can commonly be placed above/below a nearby swing point. Take Profit Taking profits may occur at a clearly defined support or resistance level. The value of this strategy comes from the synergistic effects of combining RSI and Stochastic Oscillators. While the RSI measures the speed and change of price movements, the Stochastic helps to validate or negate the RSI's signal by considering where the current price is relative to its range over a particular period. This dual-layer approach aims to minimise false signals and improve the probability of a successful trade. RSI Pullback Strategy In a clear trending market, identified by a series of higher highs and higher lows for an uptrend or lower highs and lower lows for a downtrend, traders can employ a 7-period RSI for an RSI Pullback Strategy. Ideal when using the RSI for day trading, this strategy focuses on exploiting price retracements, offering an optimised entry point in an already established trend. Entry During a pullback in price, traders look for the RSI to enter overbought or oversold territories. An entry signal may be considered when the RSI crosses back above 30 during an oversold condition or below 70 during an overbought condition. Stop Loss Similar to other strategies, stop losses are generally placed near a recent swing point for reasonable risk management. Take Profit Profits can typically be taken at an identified support or resistance level. Alternatively, traders may opt to close the trade at the most recent high or when the RSI crosses into the opposing area (from overbought to oversold or vice versa). The use of a 7-period RSI allows for a more responsive reaction to price changes, making it suitable for capturing short-term pullbacks. By entering when the RSI reverses from extreme levels, traders aim to rejoin the prevailing trend at a more favourable price. The Bottom Line Exploring advanced RSI strategies can be a game-changer for traders aiming to capitalise on market momentum. The strategies here offer a more comprehensive approach than merely adhering to traditional overbought or oversold conditions. To put them into practice, modify them so they suit your trading approach, and experience them in a real trading environment, consider opening an FXOpen account, where you'll find all the tools and platforms necessary to take your trading to the next level. Good luck! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
3
Can NFLX trend higher ? LONGIn its past NFLX got through the Covid downturn with only a 10% correction, then went through a rise into a year of consolidation and finally another big trend up which reversed badly in Winter 2021. After a business model adaption and modification of subscriptions and password/account sharing protections, price has made great gains. On the weekly chart, a trend upward has been in place since July 2022. On the weekly chart, bigger ranged candles have been put in for two weeks. It seems that from here, while NFLX could rise heading toward a new all time high. On the other hand, just as it did in 2020 at a similar price level ( marked as # 1 and an oval around the price action), it could get range bound or consolidated ( # 2 marking the present.) The mass index indicator gives a hint that the trend will continue and not reverse. It is fluctuating in a mid-range without a hint of rising into the threshold and trigger zones. Notably in the 2021 downturn, the RSI and MACD ZL) signaled the reversal before the mass index. Those two indicators in the present show no hint of bearish divergence so far. Accordingly, for the time being, NFLX continues to be a long trade with 20% upside into the level of the all-time high ( discounting any effects of inflation and dollar devaluation in any of this which is very important overall but generally ignored).
NASDAQ:NFLXLong
by AwesomeAvani
TSLA fifth wave and bullish FVG 4h timeframeI've been keeping a close watch on TSLA's recent movements, and there's something worth sharing. It seems we're in the midst of the fifth wave, if we follow Elliott Wave Theory. What's even more intriguing is that on the 4-hour chart, a bullish FVG (Fair Value Gap) could be in the works, indicationing the end of the bearish (fourth) wave. Adding to the excitement, the Relative Strength Index (RSI) is giving us some interesting signals. It's right on the edge of slipping into oversold territory, a potential sign of a turnaround. Plus, keep an eye out for the impending cross between the RSI and its RSI-based Moving Average (MA), as that could indicate a significant move coming up. This setup has definitely caught my attention, and I'm thinking there's a trading opportunity brewing. If taking the trade I would suggest a safe stoploss below the fourth wave or a more risky one below the next bullish liquidity void on the chart. I would target the end of the fifth wave as a TP area because after that I believe we will see the first correction wave of the ABC pattern. Of course, as traders, we know the drill – careful analysis and risk management are key before making any moves.
NASDAQ:TSLALong
by RuneDD
Seizing the Bullish Momentum with Fundamental Backing! 🚀📈Calling all traders! Get ready for a thrilling opportunity in USOIL (Crude Oil) as we present a compelling bullish setup that is further supported by fundamental analysis. This combination sets the stage for potentially lucrative gains! 💰💥 In the 15-minute timeframe, price retraced to the critical 0.618 Fibonacci retracement level, known for its significance in trend reversals. The bounce from this level indicates the formation of a new higher low, reinforcing the bullish case. But wait, there's more! The chart also reveals the formation of a head and shoulders pattern, which adds further conviction to the potential trade. This powerful reversal pattern enhances the probability of success. Moreover, our fundamental analysis complements the technical setup. Recent market news indicates favorable conditions for a bullish move in oil prices. Positive developments, such as a significant decrease in crude oil inventories and growing global demand, support the notion of an upward trajectory. Additionally, the RSI indicator is currently hovering above the 50 level, suggesting strong buyer interest and an inclination towards further upside momentum. This alignment of technical and fundamental factors strengthens our confidence in the trade. Furthermore, we've observed a crossover of moving averages, serving as a confirmation of the bullish sentiment. This convergence of indicators further bolsters the case for a buy entry at the current price of 69.00. To manage risk effectively, it's prudent to set a stop loss below the right shoulder of the head and shoulders pattern. From our entry point, we have several enticing take profit levels on the chart: 69.50, 70.20, and 71.20. 🎯 This setup not only offers a high-winning rate but also a favorable risk-to-reward ratio, backed by both technical and fundamental analysis. Don't miss out on this exciting opportunity to ride the bullish momentum in USOIL. Wishing you successful and profitable trades! 🚀🌟 Don't forget to press the like button if you think this insight was helpful 📊📈
TVC:USOILLong
by Thomas_Zito
2