The Relative Strength Index (RSI) is a well versed momentum based oscillator which is used to measure the speed (velocity) as well as the change (magnitude) of directional price movements. Essentially the RSI, when graphed, provides a visual mean to monitor both the current, as well as historical, strength and weakness of a particular market. The strength or weakness is based on closing prices over the duration of a specified trading period creating a reliable metric of price and momentum changes. Given the popularity of cash settled instruments (stock indexes) and leveraged financial products (the entire field of derivatives); RSI has proven to be a viable indicator of price movements.
Here we have an opportunity to buy EURJPY within a descending channel.
Exit areas are resistance levels and fib levels that show confluence with structure
Price is dipping lower as expected. We talked about the dip happening on our youtube show, and so far buying interest interest is coming in on dips.
I laid out areas of support on the chart around the Fib level and the area on the RSI. Low trend momentum should keep us inside the trading zone of 3800ish to 4100ish.
Happy trading!
Inspired by @JamesEvison who caught the triple bottom and RSI divergence before I did.
I wanted to suggest a few more ideas to support a possible bullish reversal.
1. Break of descending channel
2. On a larger time frame we see price has consolidated nicely between the .382 and .5 fib retracement level
On the Swiss Yen we can long the pair within the symmetrical triangle.
We have:
-Bullish RSI divergence: Rising RSI with lower lows on price
-Descending bullish wedge
-Support
The death cross on weekly chart and a slight bearish divergence shows us s bigger probability of breaking on the downside and retesting lower resistance zones. Expect a retrace till rsi reaches the 30 levels, for a double bounce, just like in previous bear market. Bearsih short term but bullish mid term
RSI Divergence to indicate buyers are running out of steam
Bounced of monthly resistance
Rising Wedge is to indicate sellers are taking over
Overall target is base of pattern + monthly support
RSI with EMA Signal Created By Request For @motcha1
@motcha1 Requested the RSI with EMA Signal.
A Larry Williams Follower who says it's a Great
Entry Signal when RSI Crosses EMA When VIX
Is Showing A Potential Bottom. Looks Good!!!
***Waiting For The RSI To Cross The EMA I’ve Found To Be A Very Precise Entry Without Getting In Too Early. Thanks...
1, Monthly Resistance
2, Double Top
3, Ascending Wedge
4, RSI Divergence
WAIT FOR DAILY CLOSURE BELOW THE LOWER BOUND OF THE WEDGE
TARGET BASED ON FIBONACCI RETRACEMENT ON HIGHER TIME FRAME + BASE OF PATTERN
On CADCHF we can see a rising wedge forming as well as clear RSI divergence.
Coupled with these patterns, price is also approaching an area of strong resistance.
I am looking to sell the breakout of the wedge and take profit at the recent lows
CURRENTLY IN CORRECTIVE PHASE FROM THAT BEARISH IMPULSE
THERE IS ALSO RSI DIVERGENCE
IDEALLY PRICE SHOULD CREATE NEXT IMPULSE ONCE IT BREAKS AND CLOSES BELOW THE TRENDLINE
Target based on 1.618 on Fib Extension + previous structure
Dear Friends!
1-5 Elliott Waves Up after we got my reversal at exactly 3,224 USD (on the point - kinda lucky ) - We have Regular Bearish Divergence, which confirms a retracement. Expect something like what I have illustrated for you. Just be aware of, that we don't yet have any confirmation on what corrective structure we will get - it could be ABC ZIG-ZAG, ABC...
This is a strategy that is based around using the general value of the RSI to determine the trend and then using the Stoch RSI to pick and entry point.
It also uses the RSI to determine a profit taking point or exit point from the trade.
This version doesn't have a stop loss other than the signal to trade the opposing direction. Therefore it is more effective in...
AUDJPY CORRECTING FROM IT'S PREVIOUS BEARISH IMPULSE AND DURING ITS CORRECTION THIS PAIR HAS FORMED A RISING WEDGE AND
SOME RSI DIVERGENCE.
SELL ON BREAK AND CLOSE BELOW THE LOWER OF THE WEDGE PATTERN
TARGET 1 IS BASED ON AND TARGET 2 IS A CONFLUENCE BASED ON 1.272 ON THE FIBONACCI EXTENSION AND 100 ON PROJECTION
Indicators point to a bounce off of low risk entry.
Look at all that sell volume that hits like a hammer - smells like opportunity. Hitting the strong support of 15.00 on dying volume. CCI, RSI and strong support are on favorable terms for a low risk long at this position. Banks love dumping those futures to acquire physical at the cheap.
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