RSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and...
Hello, it's Stock Justice here! In our latest video, we delve into the world of the Dynamic Fusion Oscillator (DFO) - a tool that blends the power of the Relative Strength Index and the Stochastic Oscillator. I walk you through how it works, from understanding these two base components to how we fuse them to create a balanced and sensitive tool for identifying...
The True Strength Index (TSI) is a powerful momentum oscillator that enables traders to identify potential trade opportunities by measuring the strength of a trend. This unique indicator is based on double-smoothed price changes, providing a more accurate representation of momentum in its truest form . In this blog post, we will delve into the world of TSI,...
In this comprehensive tutorial, we dive deep into the world of the Trendicator, a powerful and innovative trading tool made by @StockJustice that enables traders to identify trends, spot reversals, detect bullish and bearish divergences, and perform multi-timeframe analysis. We delve into the inner workings of this never-before-seen indicator, demystifying its...
The Stoch RSI (Stochastic Relative Strength Index) is a technical analysis indicator used to identify overbought or oversold conditions in financial markets. It is a combination of two popular indicators: the Stochastic Oscillator and the Relative Strength Index (RSI). The Stoch RSI applies the Stochastic Oscillator formula to the RSI values, aiming to provide a...
EURUSD and GBPUSD are two highly correlated pairs. So a divergence in these two can be an alert for a big reverse of price usually for the one which makes a higher high or a lower low.
It is a confirmation when the price is closing to a supply or demand level like daily or weekly high or low!
Hey traders,
Relative strength index is a classic technical indicator.
It is frequently applied to spot a market reversal.
RSI divergence is considered to be a quite reliable signal of a coming trend violation and change.
Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the...
Divergence is one of the well-known and widely used methods for determining price reversal areas, whether positive or negative and thus helps to determine entry or exit areas 📉📈
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that...
Hi guys, in order to spot a divergence you should be careful which timeframe you're looking at. for example in the left picture, the daily timeframe is showing higher highs in price (at each candle) and lower highs in RSI (at each candle). but note that these are not highs and lows and as long as you can't find signs of accumulation and distribution in highs and...
One of the reasons why a divergence on an "indicator" hasn't provided an expected result is because there was an info conflict with more data on lower resolution (aka higher timeframe was against it).
The second reason is because these indicators don't know how to distinguish buying and selling waves properly, when they start and when they end, as explained in...
What Is Divergence?
Divergence is a trading phenomenon that offers reliable and high-quality information regarding trading signals. It refers to when an asset’s price moves in the opposite direction to the momentum indicators or oscillators. Commonly used indicators include the relative strength index (RSI), stochastic oscillator, Awesome Oscillator (AO), and...
In this bearish divergence example on GBPJPY you can see the price rising on the 15 minute chart while the MACD slow and fast lines are decreasing. After that you can see the momentum on the MACD formed a bearish cross as the fast line fell below the slow line, after that there was a strong 70 pip decline.
A fellow trader here on Trading View needed some help with a trade he is taking.
Commonly when an RSI makes a new LOW and price makes an opposing HIGH this is called a "Bearish Divergence"
When this happens, its expected that price will follow and make new Lows or start moving down.
But what happens when price continues to move up?
Why would it go against the...
Welcome to the coffee shop everybody. This is your host and baristo Eric, and in today's video I am giving you a video Lesson based off of my preferences on how you should look for and use RSI Divergences.
THe Oscillator used in this video is The Heiken Ashi Algo Oscillator
Get it free here and always BOOOOOOOOOOST IT!!
There are three problems that people...
When Bitcoin was trading at around 60,000 level in late 2021 and before that year, whenever friends, acquaintance and participants asked my opinion about investing into cryptocurrency, immediately I knew they may not know much about cryptocurrency.
To clarify, I am not an expert in cryptocurrency, but I know its intrinsic value could not be calculated then and...
Trading opinions can be made in a very concrete or a structured manner just like how investors study into the financial numbers of the stock they are about to invest into.
Short-term traders also have its numbers they study into, it is the price behaviours or the price data of the instrument they are trading. When these data are converted into a pictorial...
To make an assessment if the market has turned bear, during the closing second quarter on 29th June 2022, we discussed on the topic “Using S&P to Identify Recession
and on the 19 Jul, 2 weeks ago the tutorial posted here, we studied and expecting this current rebound, topic “Nasdaq a leading indicator of Dow Jones, S&P & Russell”.
In today’s tutorial, I thought...
How can we participate in the rise and fall of interest rate? Firstly, we need to understand the difference between interest rate and yield.
Interest rates are a benchmark for borrowers whereas yield is for investors or lenders.
• Interest rates are the fees charged, as a percentage from a lender for a loan.
• Yield is the percentage of earnings a person...
