Still targeting the uptrend. Entry area's and criteria as per SOP. Waiting for RSI to trigger the demand line to see if there are buyers around support/fib.
Not all the time, but is there any denying that in general there is an RSI demand line hit just before a mark-up?
Don't take my word for it. Look for yourself.
Note: an RSI hit at the demand line is not all...
Continuing to target pull backs/retracement entries. Key being an RSI hit at the demand line (25 level AKA "oversold").
RSI is only one piece on information to suggest price the weak hands were shaken. Volume rules.
Buy low/sell high like a professional.
Follow up. Took an extra session until it hit. RSI Triggered at 25 with the spikes in demand. I'm not even looking at a long entry until RSI is at the least below its axis (50).
Approximately 1.08% positive (depending on precision of entry).
There you go. More to follow.
Targeting support/fib for re-accumulation.
Arrows note low supply pressure price areas. Low volume test zones.
Low supply + high demand = higher prices ( in addition to other factors and entry criteria).
The recent supply pressure was low. Low enough that if enough demand is met at fib it may get drawn toward that price level (path of least resistance).
If you zoom out to the 1 hour you will also see an RSI POS DIV. There was a very obvious divergence early in the week, even with the bump in volume, that did not go anywhere. Ive mentioned this before but if you...
Looks like buying started to come in in addition to a positive RSI divergence. Careful short. Use 5 or 15 to confirm or deny accumulation phases.
Would like to see a double bottom/spring in addition to sustained buy activity. USe the 5/15 to pinpoint the buying and if its continuous.
Sources of education:
Tom Williams Volume spread analysis...
Keeeeeeep coming down baby!!
Now you probably arent saying that if you are a "hodler" (whatever that means).
The lower the better. High volume reaction did come off of that previous support. Enough to slow down the down move. They are in BUYING mode though...
Trying to reverse a trend is like trying to turn a cruise ship.
What is VERY important to learn early...
Please reference Tom Williams or Richard Wykoffs material for a more thorough examonation and description of what creates bull or bear markets.
In the meantime:
The condition/health of the PRIOR trend has a direct impact of the condition/health of the CURRENT trend.
A lot to get into here. But use the above resources for a professional...
There is buying coming in as you can see (a bit more amplified/concentrated on the 1 hour). We dont want to sell into strength. Strength equals buying. Who wants to sell when SM is buying?
Since price is near support (daily are the green horizontals) I want to maximize potential reward while minimizing risk... in order to do so, price needs to move as far away...
Not a lot of buying (or selling for that matter) during the last mark-up. Makes logical sense that if there werent a lot of buyers that price would freefall a bit.
Found some buyers at support and appears to be establishing a trading range.
Going to see if it reaches fib off of that volume and see if there are sellers there.
Buy low/sell high. But do it correctly.
I use 25 and 75 as my levels with RSI set at 7. Although i adjusted the settings for my own eye/spatial awareness, you can also use the standard 30/70 and 14. The settings dont really matter as much as how the volume is behaving at specific levels.
I put a standard volume indicator (the best indicator on the platform which is free) under RSI.
Pay attention to...
As part of a thorough trend analysis you can use the 1 hour to determine the condition of the current trend and how it will determine the condition of the following Mark-up or mark-down phase.
(In order to draw anobjective channel i suggest activating the linear regression indicator)
As a visual aid/reference imagine the upper line of the channel as your supply...