I use 25 and 75 as my levels with RSI set at 7. Although i adjusted the settings for my own eye/spatial awareness, you can also use the standard 30/70 and 14. The settings dont really matter as much as how the volume is behaving at specific levels.
I put a standard volume indicator (the best indicator on the platform which is free) under RSI.
Pay attention to the following:
When RSI breaks the oversold level (25 - 30), where is price?
Is it at support?
IF YES.. how much volume appeared?
When RSI breaks the oversold level (25-30)... IS IT A RETEST of a previous support?
For example focus your attention on point 1 where a support was established. Look at RSI and look at the volume (demand)
No look over to point 3. Notice what happens when RSI breaks 25. Look at the difference in the volume. The is quite an increase compared to point 1.
Currently, price is closing in on a key daily support . The 15 MIN is showing you a POS DIV with an increase in volume. This is not indicative of a complete change in trend direction. However, you can use this imformation in your decision making process. For example, are you prepared to deal with the inherent risk of selling into a positive divergence?
Because of the positive divergence, i personally ytake that as a signal that there is about to be some kind of change in behavior and what to heed carefully and manage the risk appropriately, or avoid the short altogether.
I did circle a hypothetical target that is right below the current price. I would prefer to see a long set up off of that key daily support and we are close enough to wait..
since that is ultimately where I am looking, i could also consider a low risk short ONLY if price gets some distance from this current support that is witnessing volume. Selling into support/strength is not ideal.
lol... good luck.
I put a standard volume indicator (the best indicator on the platform which is free) under RSI.
Pay attention to the following:
When RSI breaks the oversold level (25 - 30), where is price?
Is it at support?
IF YES.. how much volume appeared?
When RSI breaks the oversold level (25-30)... IS IT A RETEST of a previous support?
For example focus your attention on point 1 where a support was established. Look at RSI and look at the volume (demand)
No look over to point 3. Notice what happens when RSI breaks 25. Look at the difference in the volume. The is quite an increase compared to point 1.
Currently, price is closing in on a key daily support . The 15 MIN is showing you a POS DIV with an increase in volume. This is not indicative of a complete change in trend direction. However, you can use this imformation in your decision making process. For example, are you prepared to deal with the inherent risk of selling into a positive divergence?
Because of the positive divergence, i personally ytake that as a signal that there is about to be some kind of change in behavior and what to heed carefully and manage the risk appropriately, or avoid the short altogether.
I did circle a hypothetical target that is right below the current price. I would prefer to see a long set up off of that key daily support and we are close enough to wait..
since that is ultimately where I am looking, i could also consider a low risk short ONLY if price gets some distance from this current support that is witnessing volume. Selling into support/strength is not ideal.
lol... good luck.