DATE PRICE RSI
24 Feb-20 18.95 69.9
20 May-20 18.17 75.7
Divergence between price movement on 24 Feb vs 20 May:
Price turned @ 18.95 vs 18.17 on the two dates which is at lower level when compared
RSI turned @ 69.9 vs 75.7 on the dates which is higher level when compared
CONCLUSION: Divergence between price turning point when compared to RSI turning points on these two dates
Also on the Daily chart a SUPPLY (short) was evident @ 18.17 to 17.90
Price on 20 May entered the zone and a short entry was signaled
TRADE SUMMARY
Short on 21 May @ 17.70 (late entry)
Stop @ 18.25 = 55 pip risk
Profit target @ 15.90
Potential profit is 180 pips vs 55 pips risk which gives me a 3:1 profit ratio
24 Feb-20 18.95 69.9
20 May-20 18.17 75.7
Divergence between price movement on 24 Feb vs 20 May:
Price turned @ 18.95 vs 18.17 on the two dates which is at lower level when compared
RSI turned @ 69.9 vs 75.7 on the dates which is higher level when compared
CONCLUSION: Divergence between price turning point when compared to RSI turning points on these two dates
Also on the Daily chart a SUPPLY (short) was evident @ 18.17 to 17.90
Price on 20 May entered the zone and a short entry was signaled
TRADE SUMMARY
Short on 21 May @ 17.70 (late entry)
Stop @ 18.25 = 55 pip risk
Profit target @ 15.90
Potential profit is 180 pips vs 55 pips risk which gives me a 3:1 profit ratio