Just wanted to share with you guys an idea you might want to define rules and backtest.
Price is at major level level of resistance on the daily (the red box), and though the previous hourly candle broke and closed above it, we're noticing RSI divergecen as price pushes higher, but RSI can't push higher, indicating that price potentially might reverse to the downside.
As I said, it's a just an idea. I have this kind of setups in the list of things I want to backtest, so I'm keeping an eye when they occur in realtime to analyse how price reacts and behaves to help me define rules to test in terms of entry, stop placement and targets.
Have a great day in the markets folks !
Price is at major level level of resistance on the daily (the red box), and though the previous hourly candle broke and closed above it, we're noticing RSI divergecen as price pushes higher, but RSI can't push higher, indicating that price potentially might reverse to the downside.
As I said, it's a just an idea. I have this kind of setups in the list of things I want to backtest, so I'm keeping an eye when they occur in realtime to analyse how price reacts and behaves to help me define rules to test in terms of entry, stop placement and targets.
Have a great day in the markets folks !