RSI setting up for bull signal, but just not there yet for $BTC!
I have marked with arrows each of the last 7 times the RSI for $BTC on the daily chart came up out of oversold conditions. (I have the arrows marked on the price chart too when it happened)
The green arrows mark the bull signals where the market found buying interest to move the market higher to start a bull move.
There were 2 red arrows where the market did not rally even with a move out of oversold conditions on the RSI. These two times had the internal momentum (ADX) still increasing strength for the bears when the break of the RSI happened. The market could not gain footing with momentum still favoring the bears. (highlighted with the red oval shows the ADX increasing with the negative directional index line in control)
The other 5 times the market came out above the oversold RSI conditions (green arrows) the internal momentum for the bears was decreasing giving buying interest to the market.
Where we are currently is still under the RSI line and in oversold conditions. The RSI and price have shown a divergence marked with the blue arrows, but still no move out above the green oversold RSI line.
We need to see a move of the RSI line above the green oversold line and we need momentum on the ADX to start decreasing when the RSI increases. This will give a solid signal to buy and the bull trend is establishing. Otherwise we wait it out for the signals to happen and keep away from buying when the RSI stays in oversold conditions with bear momentum.
If the RSI jumps up and the ADX starts to decrease at the same time then a buy signal will originate.
Thoughts?
The green arrows mark the bull signals where the market found buying interest to move the market higher to start a bull move.
There were 2 red arrows where the market did not rally even with a move out of oversold conditions on the RSI. These two times had the internal momentum (ADX) still increasing strength for the bears when the break of the RSI happened. The market could not gain footing with momentum still favoring the bears. (highlighted with the red oval shows the ADX increasing with the negative directional index line in control)
The other 5 times the market came out above the oversold RSI conditions (green arrows) the internal momentum for the bears was decreasing giving buying interest to the market.
Where we are currently is still under the RSI line and in oversold conditions. The RSI and price have shown a divergence marked with the blue arrows, but still no move out above the green oversold RSI line.
We need to see a move of the RSI line above the green oversold line and we need momentum on the ADX to start decreasing when the RSI increases. This will give a solid signal to buy and the bull trend is establishing. Otherwise we wait it out for the signals to happen and keep away from buying when the RSI stays in oversold conditions with bear momentum.
If the RSI jumps up and the ADX starts to decrease at the same time then a buy signal will originate.
Thoughts?