RSI Divergences over the last 1.5 years. Last one is bullish.

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar

Updated version HERE:


I've tried to spot every RSI divergences possible post April-2013 bubble on a daily chart . Maybe some are missing, just let a comment to notify. But I think everything is there.

I found out:
- 3 majors RSI div             . in blue.
- 3 minors RSI div             . in light gray. I called them like this because they weren't significant, as they were quite flat OR within 70 - 30 RSI range OR not on major highs, lows.

Remarkable results:
- Surprisingly RSI divergences are quite scarce.
- ... and one is probably in the making !
- 50% success rate for now (1 fail, 1 sucess).

Given this last RSI divergence, there are good odds that we won't make a new lower (<$275) anytime soon. And it gives a strong pontential bounce in the making if the RSI goes back over 30 (key level IMO             ).


Here is a good ressource about RSI div: http://www.forexmt4.com/Gyula/Divergence%20Cheat%20Sheet.pdf
There are 4 RSI Divergences setups
* Regular Bearish Divergence
* Regular Bullish Divergence
* Hidden Bearish Divergence
* Hidden Bullish Divergence

Cheat sheet here: http://www.babypips.com/school/high-school/trading-divergences/divergence-cheat-sheet.html
This divergence could take a bit longer to play out. We may reach over a hundred dollars lower before the divergence actually plays out. A whole lot of volume and not a whole lot of rise yet. 31k BTC ask... this thing is going to over-correct big time.
J.Livermore MoonTrader
We need a couple of days/weeks to validate the divergence. I think that if we go to new low we won't have a higher low on RSI, which will invalidate the pattern.
MoonTrader J.Livermore
Good point. It is not a very big divergence.
Update 1:
* Added 1 Major RSI Div.
* Changing status From Major to minor, regarding the rules I've set.
* Success rate is now 100% (2/2)

+1 Reply
tootyfrooty J.Livermore
Nice work.
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