Currently watching closely this pair as it made a double bottom with divergence. I'm waiting for price to go above the "V" top and retrace to the 61.8 Fibonacci level to go long from there.
I would look at the daily time fram before commiting to a long on the hourly. Just my 2 cents. Ive been short on this since yesterday closed with ruffly 50 pips of profit. my thinking is it could fall to .8550 and if this level doesnt hold then down to 8450. I am not recommending anything just stating what I have traded and what i see.
Daniel.Dalo
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Thank you very much for your comment, I will pay close attention and watch the daily timeframe. On the daily, what I've been looking for is that with the Ichimoku system analysis, price is right at a flat Kumo level with the cloud suggesting an uptrend, same as the weekly, so I think that although price is moving lower at the moment, it could also be a very nice time to go long for some pips of profits.
I appreciate your comment, I'll watch this one closely before entering a long position, thank you and best of luck!
SoxKeepYouWarm
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I've seen you post a couple times with divergence I don't really understand. It looks like your going from lower lows to higher lows in price, and the same thing for RSI. What are you doing?
Daniel.Dalo
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In the case of double bottoms as in this case, the RSI is measuring the closing price, so if price has tested the same level twice but the RSI is going from oversold to a higher low, it means price is losing strenght and it may be an opportunity to go long in this case. Of course it's always good for me to find a good level of support as well looking back in the chart.
But respecting the divergence is just that, closing price testing same level, but RSI showing higher lows in this case.
I hope I explain correctly, best of luck David!
Daniel.Dalo
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hahaha I just noticed I said that in this case RSI is measuring the closing price, but I meant always, just that in the double bottom, the divergence is finding higher lows on the RSI and same closing price or lower closing price on the chart.