Hi guys!
I've decided to continue exploring various instruments. Today we'll talk about Stochastic oscillator. But before we start, I have an important message for you. Using indicators with their default settings will not yield good results. I try to tell you not only about basis but about different specificities of each instrument. That will make your...
General RSI Indicators applied to the ETCBTC D chart (where present). This helped me in taking in the lesson below from Crypto Cred.
I hope others find it useful.
Source Used: Thanks Crypto Cred!!
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www.babypips.com
Both dipping and recovering price cycles represent good buy-ion points for BTC day trades. There are a multitude of good buy ins given the above indicators and bollinger band overlay (200 day SMA).
When price is falling, the lower standard deviation of the bollinger bands are helpful in establishing buy in points. When price is collapsing initially after a high,...
The relative strength index (RSI) is a momentum indicator. It is primary used to attempt to identify overbought and oversold conditions. It is considered overbought when the RSI indictor is above 70 and it is a sign to make a short, and oversold when is below 30 and it is a sign to make a long.
-is to find out if the momentum is getting stronger or weaker, if the chart make a higher high and the indicator made lower high so it refer to; the momentum is decreasing, in order to spot the (breakout from fakeout)
-in this example we have a rectangle consolidation, you can see the first breakout was a fake out, here we'll use divergence to spot this fake out...
The following chart shows the enhanced RSI indicator in with the settings of the current dominant market cycle. The cyclic-smoothed (cRSI) indicator is able to indicate price turns analog to indicator turns above/below the cyclic lower/upper much clearer than the basic RSI.
The indicator is available for usage in TradingView:
Today, I show this example for you to understand why bullish divergence is important for an entry order.
FWD.AX is selected because VectorVest indicator RT crossover occurred on 4 May which is the same day that Stochastic (8,3,3) crossover occurred
Value of RT changed from 0.97 (3 May) to 1.03 (4 May)
Value of RT yesterday was 1.53
If you hold this stock since...
Due to the nature of an oscillating indicator such as an RSI vs lagging idicators such as MACD, the breakout of the RSI Linechart may indicate a range breakout and volatility expansion before price action.
I am fairly new to this but have been testing out this technique with stochastics and MACD and it works well for me.
Once stoch goes bullish from oversold, wait for MACD to cross and confirm a bullish trend is emerging and buy.
When we have reached a peak and it's time to sell - stoch will cross to bearish from overbought followed by MACD.
This works well with...
You need to read the tutorial first before this post. Here is the tutorial :
This is an example of how to apply the concepts I explained in the oscillators tutorials.
I have numbered the text boxes so that you read them in the correct sequence. Start from the left hand side and move along the chart. In this example we have applied some basic concepts like...
Note: A prerequisite tutorial about trends is posted in the related links below.
Oscillators can be a very useful indicators in trading if used correctly. However misusing them will only return disappointing results.
Some of the most popular examples of oscillators are the stochastics, and relative strength index . I will use stochastic in this tutorial, but...
Hello Traders:
we have a Hidden Divergence ( + ) in EURUSD
Hidden Divergence says that in this position the prize will Rise
Let's see that it is working or NOT
Good Luck
:::PEACE:::
Hello Trader:
Although Divergence is same in MACD and RSI or any OSCILLATOR like this, shows Divergence.
if this Chart is EDUCATIONAL then:
If you wanna Learn more about Divergence then follow me to LEARN MORE...
and please like for other TRADERS to give them the chance that the could also see this CHART and they learn too, something less from Market...
Hey guys, this is an update to the EURJPY setup I posted last week.
We are right there at the bottom of the triangle.
What is interesting to me is the formation of an RSI bamm at Friday's closing price.
Pattern Identification
RSI Bamm at bottom of triangle.
RSI Bamm is the formation of a W/M structure at RSI oversold/overbought where this is considered a...
Hello Traders!
As many of you know, I use the Stoch RSI as my main cycle indicator. As an indicator of an indicator, it normalizes the RSI indicator itself and provides excellent guidance on the price cycles of Gold. And while I base my daily analysis on the Daily time frame, I use 2 shorter time frames to enter my positions. These time frames are 30 minutes and...
A simple trade using a harmonic three drive and RSI. Entry for the trade has already gone. But it could be useful to point to the setups and conditions around it, because it provide a great example of combining high probability technicals to initiate a trade.
The price provided a great shorting opportunity after completing a three drives pattern around 1.0770...
Friends,
Let me just start by making this statement, which has caused more reaction than I have ever cared, but it simply is true:
1 - RSI's bearish divergences do NOT foretell an impending decline in price. Instead, they are associated with sustained rise in price.
Conversely:
2 - RSI's bullish divergences do NOT foretell an impending rise in price. Instead,...
