Tag Archives: rsidivergence

Trade: CBUY Bullish Divergence Oversold Buy Opportunity

Trade: CBUY Bullish Divergence Oversold Buy Opportunity

Snapshot:

CBUY Bullish Divergence Oversold Buy Opportunity
CBUY Bullish Divergence Oversold Buy Opportunity

Reasons For Trade:

  1.  6p acting as a support
  2. RSI is showing bullish divergence
  3. volume increased

Stop Placement:

3.7

Targets:

First: at 1.618 Fib extension i.e. 9.3p

Second: 12 p where previous structure is

Third: 17p where 200 sma and price action gap is

Trade Execution:

Take either multiple positions on each target completions based on market condition or take one position and sell 3 times.

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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Use The Magic Of RSI To Beat Market Trends

Use The Magic Of RSI To Beat Market Trends

RSI MagicRSI (Relative Strength Index) is a Momentum Oscillator. It indicates whether a market is losing or gaining its momentum in the current direction. If used correctly in association with other tools, we can use RSI To Beat Market Trends.

Usually RSI is usded in 3 ways. But to produce best results, a trading strategy must make use of other tools and use RSI as one of the additional indicators to give confirmation. This is because of the fact that RSI can stay at a level for a long period of time while price is still moving.

  1. Overbought/Oversold Conditions
    1. RSI crossing over 70 level is considered as Overbought

      RSI Overbought
      RSI Overbought
    2. RSI crossing below 30 level is considered as Oversold

      RSI Oversold
      RSI Oversold
  2. Divergence (Loss/Gain of Momentum)
    RSI Divergences Chart
    RSI Divergences Chart
    Price Action RSI Expected Type
    Making Lower/Equal Lows Making Higher Lows

    (Gaining Upward Momentum)

    Bullish Regular
    Making Higher/Equal Highs Making Lower Highs

    (Losing Upward Momentum)

    Bearish Regular
    Making Higher/Equal Lows Making Lower Lows

    (Losing Downward Momentum)

    Bullish Hidden
    Making Lower/Equal Highs Making Higher Highs

    (Gaining Downward Momentum)

    Bearish Hidden

    RSI Bullish Regular Divergence Example
    RSI Bullish Regular Divergence Example
  3. Center Line Crossover
    1. Bullish above 50:
      1. Not very reliable so other factors/tools need to be added to produce better results.
      2. A cross over 50 level RSI downwards indicates bearish move.

        RSI 50 Crossover
        RSI 50 Crossover
    2. Bearish below 50
      1. Not very reliable so other factors/tools need to be added to produce better results.
      2. A cross over 50 level RSI downwards indicates bearish move.

        RSI 50 Crossover Level
        RSI 50 Crossover Level
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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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