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Rsi_divergence

HA-RSI + Stochastic Ribbon: The Hidden Gem for Trend & MomentumNavigating volatile markets requires more than just raw price action. The Heikin Ashi RSI Oscillator blends the power of smoothed candlesticks with momentum insights to give traders a clearer picture of trend strength and reversals. At Xuantify , we use the Heikin Ashi RSI Oscillator as a hybrid momentum and trend tool. While the indicator calculations are based on Heikin Ashi values to smooth out noise and better capture trend dynamics, the chart itself displays standard candlesticks (real price data) . This ensures that all signals are aligned with actual market structure, making it easier to execute trades with confidence and clarity. This dual-layer approach gives us the best of both worlds: clarity from smoothing and precision from real price action. MEXC:SOLUSDT.P 🧠 How We Use It at Xuantify At Xuantify , we integrate the Heikin Ashi RSI Oscillator into our multi-layered strategy framework. It acts as a trend confirmation filter and a momentum divergence detector , helping us avoid false breakouts and time entries with greater precision. We pair it with volume and volatility metrics to validate signals and reduce noise. Note the Stochastic Ribbon Overlay as shown in the chart, very accurate for momentum. ⭐ Key Features Heikin Ashi Smoothing : Filters out market noise for clearer trend visualization. RSI-Based Oscillation : Measures momentum shifts with precision. Color-Coded Bars : Instantly identify bullish/bearish momentum. Dynamic Signal Zones : Customizable overbought/oversold thresholds. Stochastic Ribbon Overlay : A powerful multi-line stochastic system that enhances momentum analysis and trend continuation signals. 💡 Benefits Compared to Other Indicators Less Whipsaw : Heikin Ashi smoothing reduces false signals common in traditional RSI. Dual Insight : Combines trend and momentum in one visual. Better Divergence Detection : Easier to spot hidden and regular divergences. Visual Simplicity : Clean, intuitive design for faster decision-making. ⚙️ Settings That Matter RSI Length : Default is 14, but we often test 10 or 21 for different timeframes. Smoothing Type : EMA vs. SMA – EMA reacts faster, SMA is smoother. Overbought/Oversold Levels : 70/30 is standard, but 80/20 can reduce noise in trending markets. 📊 Enhancing Signal Accuracy Combine with Volume Oscillators to confirm momentum strength. Use Price Action Zones to validate oscillator signals. Look for Divergences between price and oscillator for early reversal clues. 🧩 Best Combinations with This Indicator MACD : For cross-confirmation of momentum shifts. Bollinger Bands : To identify volatility squeezes and breakouts. Support/Resistance Levels : For contextual trade entries and exits. ⚠️ What to Watch Out For Lag in Strong Trends : Like all smoothed indicators, it may react slightly late. Over-Optimization : Avoid curve-fitting settings to past data. Standalone Use : Best used in conjunction with other tools, not in isolation. 🚀 Final Thoughts The Heikin Ashi RSI Oscillator is a powerful hybrid tool that simplifies complex market behavior into actionable insights. At Xuantify, it’s a core part of our strategy toolkit, helping us stay ahead of the curve with clarity and confidence. 🔔 Follow us for more educational insights and strategy breakdowns! We regularly share deep dives into indicators, trading psychology, and backtested strategies. Stay tuned and level up your trading game with us!
Education
by Xuantify
Equity Research Flash – BEML Ltd.CMP: ₹3,242.10 | Breakout From Falling Trendline BEML has decisively broken out of a falling trendline and is now sustaining above a key consolidation zone. With strong bullish candles, a rising RSI, and healthy volume spike, the stock signals bullish momentum. Immediate resistance lies at ₹3,420–₹3,480. Sustained move above could target ₹3,750+. 20/50 EMA crossover supports the upward trend. Traders may consider entries on dips with SL near ₹3,080. For educational purposes only
NSE:BEMLLong
by rmhetre15
USDCHF - BUY CALL - Divergence + wedge pattern + Accumulation USDCHF - currently the pair is in consolidation phase, followed by RSI Bullish Divergence and A wedge pattern. These two formations followed by a Bearish trend gives us an indication that market will take a bull run after accumulating positions. we plan our entry as follows. Entry Point : After break of Resistance level (LH) TP1 : with a risk to reward of 1:1 TP2 : 1:2 Risk to Reward Stop LOSS : slightly below the LL of bearish trend.
Long
by ProTradeProfessor
TATA MOTORS IGNITING MOMENTUM - Pivot Points: The classic pivot point is 731.45, with resistance levels at 733.4, 736.3, and 738.25, and support levels at 728.55, 726.6, and 723.7 Tata Motors' short-term trend appears bullish, with analysts predicting an upside target of ₹770–780 in the coming weeks. The stock has shown strong resilience near its support level of ₹715 and is trading above key short-term moving averages, signaling strength. Key Levels: - Support: 715–720 - Resistance: 735–740 - Target: 770–780 OR MORE TOWARDS 823
NSE:TATAMOTORSLong
by ACHARTS3108
"Nifty 50 Eyes Breakout from Key Support Zone"**Support Zone (Red Rectangle)**: * Strong support between ₹24,290 – ₹24,340. * Multiple price bounces have occurred here, indicating demand presence. **Resistance Levels**: * **Immediate resistance**: ₹24,409.65 (horizontal red line) * **Next resistance**: ₹24,494.45 **Support Levels**: * **Immediate support**: ₹24,290 * **Next support**: ₹24,240.65 **RSI (Relative Strength Index) – 14 Period** * RSI is at **36.25**, near the oversold region. * Indicates the index may be poised for a short-term bounce. * Positive RSI divergence is not yet confirmed but should be monitored. --- **Bullish Scenario**: * A breakout above the black descending trendline (\~₹24,360) with volume can lead to: * First target: ₹24,409.65 * Second target: ₹24,494.45 * Supported by wedge breakout and RSI recovery. **Bearish Scenario**: * Breakdown below ₹24,290 zone can trigger a fall to: * First target: ₹24,240.65 * Second target: Lower bound of ascending channel (\~₹24,060)
NSE:NIFTY
by Price_actiontaker14
Fartcoin: Is the Smell of a Downtrend in the Air? 📉 Fartcoin: Is the Smell of a Downtrend in the Air? 💨 🚨 Alert: The RSI is holding its nose... and so should we. After a suspiciously bubbly rally, $FARTCOIN is now showing bearish RSI divergence on the 4H chart — and let’s be honest, it’s starting to stink. 🦨 The recent price action looks like someone tried to pump it... but forgot to ventilate. 💣💨 🧻 Support is about to get wiped. 💩 MACD says momentum is going down the drain. 🚽 Volume drying up like gas after Taco Tuesday. TA Summary: RSI Divergence ✅ Rising wedge (aka clogged pipes) ✅ Community still in denial? ✅
Short
by MiguelFTCurado
Equity Research Update – Paras Defence and Space Technologies CMP: ₹1,143 | Upside Potential: High Paras Defence has broken out of a strong resistance zone (~₹1,120–₹1,160), confirmed by significant volume and bullish momentum. The RSI shows strength above 70, indicating buyer dominance. Historical resistance, marked by previous rejections, may now act as strong support. If sustained, this breakout could lead to a fresh uptrend. Investors may consider accumulating on dips with a medium-term target of ₹1,300–₹1,350, keeping a stop-loss below ₹1,080. Recommendation: BUY on Breakout Confirmation For Education Purpose only
NSE:PARASLong
by rmhetre15
1
Weekly Support is around 80000.Weekly Support is around 80000. However, 72500 - 73000 is its previous breakout level & probably a Best Buying Rage (if it touches) which is also a Confluence area of Trendline Support+Important Fib. level. Bullish Divergence on Shorter Time Frame + Weekly Support around 80000 (if Sustained) may push the Price up towards 87000 & then around 95000 - 96000. Ultimate Resistance is around 110000. Crossing this level may open new Highs Targeting around 136000. On Shorter Timeframe, 85000 - 86000 is the Immediate Resistance & Support is around 80000.
BINANCE:BTCUSD
by House-of-Technicals
RSI 101: Revealing the Special Characteristics of RSIWhy does RSI have support and resistance levels at 40 and 60? Why does divergence happen between RSI and price? What is RSI momentum? All the characteristics of RSI (that I know) will be explained here. Formula and Meaning If you are using TradingView, you probably already know what RSI is and what "overbought" and "oversold" mean. So, I won’t repeat it here. Instead, I’ll dive deeper into the true nature of RSI, giving you a different perspective. You can skip the mathematical formula of RSI, it’s already discussed everywhere online. Just remember this ratio table: Here’s how I explain the table: At RSI = 50, the average gain equals the average loss (I'll call this the buy/sell ratio). This is a balanced point. Buyers and sellers are equally strong. At RSI ~ 60 (66.66), the buy/sell ratio = 2/1. Buyers are twice as strong as sellers. At RSI ~ 40 (33.33), the buy/sell ratio = 1/2. Sellers are twice as strong as buyers. At RSI = 80, the buy/sell ratio = 4/1. Buyers are four times stronger. At RSI = 20, the buy/sell ratio = 1/4. Sellers are four times stronger. The formula shows that when RSI reaches 80 or 20, the buyer or seller is extremely strong — about four times stronger — confirming a clear trend. At these levels, some Trading strategies suggest placing a Sell or Buy based on the overbought/oversold idea. But for me, that’s not the best way. The right approach is: when a trend is clearly formed, we should follow it. I'll explain why right below. Look at this chart showing RSI changes with the buy/sell ratio: When RSI > 50: When RSI < 50: You can see that the higher RSI goes, the slower it climbs, but the high buy/sell ratio makes price move up faster. Similarly, when RSI goes lower, it drops slower but price drops faster. That’s why at overbought (RSI=80) or oversold (RSI=20) areas, you need to be careful. Even a small RSI moving can lead to big price changes, easily hitting your stop loss. On the other hand, if you follow the trend and wait for RSI to pull back, you will trade safer and more profitably. RSI Key Levels Here are some special RSI levels I personally find useful when observing FX:XAUUSD : (These levels are relative. They might vary with different timeframes or trading pairs. Check historical data to find the right ones for you. On bigger timeframes like M15 or above, the accuracy is better.) RSI = 20 When RSI hits 20, sellers dominate. This confirms a trend reversal to bearish. RSI = 80 When RSI hits 80, buyers dominate. This confirms a trend reversal to bullish. RSI = 40 This is a sensitive level. Sellers start gaining the upper hand (sell/buy = 2/1). If buyers lose 40, they lose their advantage. So RSI >= 40 is "buyer territory". In an uptrend, RSI usually stays above 40. RSI = 40 acts as support in an uptrend. RSI = 60 Same idea. RSI <= 60 is "seller territory". RSI = 60 acts as resistance in a downtrend. 40 and 60 are considered the key levels of RSI. Now you guys know why RSI has support/resistance around 40/60! RSI Range As you know, RSI moves between 0 and 100. Since RSI >= 40 is buyer territory, we can see the relationship between price and RSI: When RSI stays above 40, price tends to move in an uptrend: When RSI stays below 60, price tends to move in a downtrend: When RSI stays between 40 and 60, buyers and sellers are balanced, and price moves sideways in a box: When RSI is moving, It creates a RSI Range. Whenever the trend switches between the three states — uptrend, sideways, and downtrend — a Range Shift is formed. At first, RSI moves in 40-60 range, price moves sideways. A strong price move pushes RSI to 80. Later, RSI stays above 50, helping price grow strongly. When momentum fades, RSI returns to 40-60 and price moves sideways again. Note: RSI reflects Dow Theory by showing the stages of accumulation, growth, and distribution. And as you see, when RSI touches key levels, the trend often pulls it back. RSI Momentum Price momentum means how fast price changes.RSI momentum represents the change in the strength between buying and selling forces. When RSI > 50: If price falls, RSI shows high momentum — RSI drops fast but price drops slowly. If price rises, RSI shows low momentum — RSI rises slowly but price rises fast. For example, at first RSI is above 50. Price drops from (a) to (b) by 44 units, RSI drops from (Ra) to (Rb) by 25 units. Later, RSI drops from (Rb) to (Rc) (also 25 units) but price drops from (b) to (c) by 73 units. When RSI < 50: If price falls, RSI has low momentum — RSI drops slowly but price falls fast. If price rises, RSI has high momentum — RSI rises fast but price rises slowly. RSI and Price Divergence Divergence happens when price and RSI move in opposite directions: Price goes up but RSI goes down, or vice versa. Why does divergence happen? In a strong downtrend, price forms a bottom at point (1), and RSI drops to level (r1). When a price pullback happens, price pushes up to a peak at point (2), and RSI also bounces back to level (r2). Because the downtrend is strong, after completing the pullback (1-2), price continues to make a lower bottom at point (3). At this point, remember the behavior of RSI momentum when RSI is below 50: It takes a large price drop (from 2 to 3) to cause a small RSI drop (from r2 to r3). Meanwhile, even a small price increase (from 1 to 2) causes a large RSI rise (from r1 to r2). Since the distance (1-2) is smaller than (2-3), but the RSI move (r1-r2) is bigger than (r2-r3), divergence is created. Divergence shows that the current trend is very strong, not a complete signal of a trend reversal. (I might share with you how to spot a complete RSI reversal signal in future posts.) As shown in the example above, after forming bottom (5) and creating a bullish divergence between (3-5) and (r3-r5), price still kept dropping sharply while RSI kept rising. In these areas, if you keep trying to catch a reversal just based on divergence, you will likely need to DCA or cut your losses many times. That’s why the most important thing in trading is always to follow the trend. RSI Exhaustion RSI Exhaustion happens when RSI keeps getting rejected by a resistance or support zone and can’t break through. After a strong downtrend, RSI recovers but stalls around the 5x zone. It tries many times but fails, showing buying power is weakening. Then the downtrend continues: Exhaustion near high or low RSI levels creates stronger divergences than exhaustion in the middle range: Double or triple tops/bottoms on RSI (M or W shapes) basically indicate RSI exhaustion. RSI Can Identify Trend Strength In an uptrend: If RSI pulls back to a higher level before going up again, the trend is stronger. The pullback should not fall too deep (below 40). Example: First rally: RSI drops to 60 before rising again → strong rally (273 units). Second rally: RSI drops to 50 before rising again → weaker rally (94 units). Same idea for a downtrend: If RSI pullbacks to 50 then drops again, the downtrend is stronger than if it pullbacks to 60. RSI Support and Resistance Besides 40-60 acting as support/resistance, RSI also reacts to old tops and bottoms it created. Why does this happen? RSI is calculated from closing prices. On a higher timeframe, the candle close price is a high/low or support/resistance price on lower timeframes. When RSI moves in a trend on a higher timeframe, it maintains a buy/sell ratio, forcing lower timeframe RSI to oscillate within a range. Example: On H4, RSI stays above 40 → uptrend. It makes H1 RSI move between 30-80. Sharp RSI tops/bottoms react even stronger because they show strong buying/selling forces. Summary When looking at the price chart, we can see that price can rise or fall freely without any defined boundaries. However, RSI operates differently: it always moves within a fixed range from 0 to 100. During its movement, RSI forms specific patterns that reflect the behavior of price. Because RSI has a clear boundary, identifying its characteristics and rules becomes easier compared to analyzing pure price action. By studying RSI patterns, we can make better assumptions and predict future price trends with higher accuracy. I have shared with you the core characteristics of RSI, summarized as follows: Besides overbought (80) and oversold (20), RSI respects 40 and 60. 40 is support level in an uptrend. 60 is resistance level in a downtrend. In an uptrend, RSI stays above 40. In a downtrend, RSI stays below 60. An RSI Range-Shift leads to a trend change. RSI Divergence shows strong trends. Double or triple tops/bottoms show RSI exhaustion → potential reversals. The higher the RSI level, the slower it moves, but the faster the price rises. The lower the RSI level, the slower it moves, but the faster the price falls. A strong uptrend can be identified when RSI moves within a higher range or shows continuous bearish divergences. A strong downtrend can be identified when RSI moves within a lower range or shows continuous bullish divergences. RSI reacts to its old tops and bottoms. Sharper RSI peaks show stronger selling. Sharper RSI bottoms show stronger buying. In the next parts, I’ll show you how to apply these RSI's Characteristics to trend analysis, multi-timeframe analysis, and trading strategies, that you might have never seen before. I trade purely with RSI. Follow me for deep dives into RSI-based technical analysis and discussions!
FX:XAUUSDEducation
by dangtunglam14
2
Trading A Divergence Trade (Breakdown) with Pivots and LiquidityTrading divergences was always a problem for me in the past. I did the same thing you did and got it wrong every time. I was trading divergences when i saw them instead of realizing a divergence is a flip of support and resistance levels. I just needed to know where they are. In this video: Internal vs External Pivot divergence confirmation: You can have two types of pivots on your chart. One for long term and one for short term. Using them to confirm short and long term price action is intuitive as youll be able to see the market squeezing on the short term while knowing where your long term price structure exists. Price action to Divergence Confirmation: A divergence on a short term pivot is an indication of short term loss of trend or reversal. If the short term has no divergence but the long term does, you are about to end up with some pretty large price moves. Youll be confirming the divergence by looking for highs, lows, and closes moving the wrong way from current price action. This video will give you a method you can use to draw out your support zone / resistance zone / divergence zone and use them to your advantage. The "Divergence Zone" that you draw out is the very reason why so many people fail at divergences. Bare in mind that when you have a divergence, support and resistance are on the WRONG sides as their normally are so you'll learn here how to find those zones as well. Then in the end of the video ill show you how to use lower timeframes to confirm the new move of the market. Thanks, everyone. For coming through to the CoffeeShop.
CME:6J1!Education
by CoffeeshopCrypto
2
GBPJPY TODAY FORECASTIn this forecast we're analyzing 2H time frame for GBPJPY. Today I'm looking for a potential buy trade setup. According to my analysis and strategy when price enters in my key levels as shown in the chart and give any bullish confirmation like candlestick pattern or price action. After taking confirmation we'll trigger our trade. Confirmation is most important part of this analysis. Always use stoploss for your trade. Always use proper money management and proper risk to reward ratio. This is just my analysis. Further updates related this analysis will posted soon once price reach our levels. #GBPJPY 2H Technical Analysis Expected Move.
Long
by TradeTacticsreal