I continue to say it, but will mention it again.
For me, bullish divergence with oversold RSI is the most consistent technical signal that I have ever seen for predicting a solid bottom or bounce.
Does this mean THE bottom is in? No. But did it tell us that the market was ready to bounce? Yes.
I have been showing these for years in the newsletter and on twitter before I even had one. The hit rate is astounding, although still far from perfect.
We do have hidden bearish divergence now, and we still never even made it to oversold on time frames above the 4 hour. So I am less confident about what comes next.
I will feel far more comfortable back above $69,000, the previous all time high. I have shown weekly charts that indicate why - that was resistanec on the past 3 weekly candles.
For me, bullish divergence with oversold RSI is the most consistent technical signal that I have ever seen for predicting a solid bottom or bounce.
Does this mean THE bottom is in? No. But did it tell us that the market was ready to bounce? Yes.
I have been showing these for years in the newsletter and on twitter before I even had one. The hit rate is astounding, although still far from perfect.
We do have hidden bearish divergence now, and we still never even made it to oversold on time frames above the 4 hour. So I am less confident about what comes next.
I will feel far more comfortable back above $69,000, the previous all time high. I have shown weekly charts that indicate why - that was resistanec on the past 3 weekly candles.
scott.melker@texaswestcapital.com