COUNTER TREND trade on the EURGBP (RSI DIVERGENCE explained)
Here on the EURGBP i see a good counter trend trading opportunity by combining the facts. We have a triple top with RSI divergence and we also have some long wicks on the last test of this structure level indicating that there is some selling pressure up here around an even handle number at .73000 and these even handle numbers are worth paying attention too, sometimes they will act as resistance and support levels. i have stops above the last highs and target 1 and 2 down at previous support levels.
RSI divergence explained: In the image above there is a great example of RSI divergence, as i pointed out in BLUE, price action has been making higher highs and as i pointed out in red the RSI indicator has been making lower highs. When this happens it is known as RSI divergence and when you combine this indication with other technical factors it can be very helpful.
If you liked this analysis then check out my youtube channel for tutorial videos on how i break down the markets and also tutorials on strategies such as advanced patterns and structure based strategies!
LINK:https://www.youtube.com/channel/UCGL9ubdGcvZh_dvSV2z1hoQ
DISCLAIMER: trade at your own risk this information is for educational purposes only and should not be taken as trade advise always seek council from a licensed adviser before ever risking any capitol!
Update status
RSI divergence explained: In the image above there is a great example of RSI divergence, as i pointed out in BLUE, price action has been making higher highs and as i pointed out in red the RSI indicator has been making lower highs. When this happens it is known as RSI divergence and when you combine this indication with other technical factors it can be very helpful.
If you liked this analysis then check out my youtube channel for tutorial videos on how i break down the markets and also tutorials on strategies such as advanced patterns and structure based strategies!
LINK:https://www.youtube.com/channel/UCGL9ubdGcvZh_dvSV2z1hoQ
DISCLAIMER: trade at your own risk this information is for educational purposes only and should not be taken as trade advise always seek council from a licensed adviser before ever risking any capitol!
Update status