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Rsi_oversold

Are we reeealy "oversold" Be careful with that wordHistory has shown many time that the word oversold can be very misleading, especially for people thinking this is the bottom. I have made the mistake of falling into this trap and thinking prices can't go lower so this is a reminder to myself and others to be very careful believing this word to be truth and factual. Its the Relative Strength Index ( RSI ) not the OverBought/Oversold Index. Don't believe people who say we will go up or down because of RSI, you can get rekt like that. Use it as a piece to the puzzle to form an opinion, not as a factual buy signal. Key word = Strength RSI is divergence is one of the most important things you could learn in regard to RSI. Great luck and please like/share the post if you found this insightful! Please share ideas if you see holes in my TA, it will help me and the people reading this. Thanks! I'm no pro and I will make mistakes so its always great to get 2nd and 3rd opinions after mine. Joey Rocket Cryptos
BITSTAMP:BTCUSD
by GhostRyeder
3
ETHUSD - Weekly RSI bullish divergence fractalOnly on USD exchanges since USDT exchanges closed at a different price. Fractal for bull market of 2015-2016. Back then we saw a bull market (from the end of the 2013-2015 bear market) which ended with a weekly bearish divergence on the RSI . The bottom of the following ~70% retrace in 2016 was marked by a bullish weekly divergence. Now we can see that the 2017-2018 bull run ended with a similar weekly bearish divergence and is now forming a bullish divergence with almost identical price action to 2016 after an 87% retrace. This divergence is not as strong as before but if it confirms it is reasonable that we will see an extended bull market for ETH once again.
COINBASE:ETHUSDLong
by Ins1d1a
ETHUSD - Weekly RSI bullish divergence fractal.Only on USD exchanges since USDT exchanges closed at a different price. Fractal for bull market of 2015-2016. Back then we saw a bull market (from the end of the 2013-2015 bear market) which ended with a weekly bearish divergence on the RSI. The bottom of the following ~70% retrace in 2016 was marked by a bullish weekly divergence. Now we can see that the 2017-2018 bull run ended with a similar weekly bearish divergence and is now forming a bullish divergence with almost identical price action to 2016 after an 87% retrace. This divergence is not as strong as before but if it confirms it is reasonable that we will see an extended bull market for ETH once again.
COINBASE:ETHUSDLong
by Ins1d1a
Trading Pumps in a Sideways MarketWe've been trending sideways a lot lately. We mostly have pumps and long consolidations, not a proper trend. So, here are some tips on how you can trade and survive in this market. There are 2 basic ways of trading sideways trends. I'm using the M15 chart to illustrate. 1) Treat everything as a range. Trade breakouts from the range. Place Buy Stop orders above the new highs and Sell stop orders below the new lows and wait for the price to come to you and trigger one of your orders instead of going long/short inside the range to chase the price in either direction. Take profit immediately after the move ends. This way: - you don't have to pay interest for open positions inside the range (sometimes sideways trend can last for days and just maintaining the position becomes more expensive than the potential reward) - you don't care much about direction and teases/fakeouts, you are ready to go either way when a breakout happens - you don't have to manage opened positions and worry about breaking even if market changes direction and goes against your positions On the chart: Green Arrows - Stop Buy Orders Red Arrows - Stop Sell Orders Green dots - a Buy Stop order is triggered, a long position opened, Lime dots - Exit point to take profit Red dots - a Sell Stop order is triggered, short position opened, Magenta dots - Exit point to take profit When price is above EMAs and going up: - look for long entry points, ignore shorts - place a Buy stop above each new high/top - place a Sell stop below 50% retracement of the entire swing or below EMA 100-200 or below key support level (such as 6000) When price is below EMAs and going down: - look for short entry points, ignore longs - place a Sell stop below each new low/bottom - place a Buy stop above 50% retracement of the entire swing or above EMA 100-200 or above key resistance level (such as 6000) The idea behind is that in a strong trend/after pump we usually have 23.6-38.2 corrections, rarely 50%. So, going past 50% after pump usually results in fading and reversal. EMA 200 roughly splits the bear/bull markets. When price is crossing the line far enough it usually means a reversal. EMA 100 is a sort of median line and price tends to come back to it (just like bollinger and pitchfork median lines) EMA 50 is a rough meandering path for the price Don't place orders within the range because the market can always change direction, sudden moves inside the range and traps (yellow spots) can trigger your orders and then go in the opposite direction. It's not perfect but it works. 2) Trade based on RSI overbought/oversold levels. RSI is very useful in ranges and during corrections and doesn't help much during trends, because it's an oscillator. - note prev extreme RSI levels, is it mostly oversold or overbought? - if RSI is mostly oversold (below 30) its curve may not reach the overbought 70 level, you need to adjust the RSI channel to 20-60, where 60 is the new overbought level. Go Long at oversold level 30 or below, Exit/Go Short early at RSI 60 or at the overbought 70 if reached. RSI below 60 is considered a bearish market. - if RSI is mostly overbought (above 70) its curve may not reach the oversold 30 level, you need to adjust the RSI channel to 40-80, where 40 is the new oversold level. Go Short at overbought level 80 or above, Exit/Go Long early at RSI 40 or at the oversold 30 if reached. RSI above 40 is considered a bullish market. - note that RSI does not include the wicks, only bodies (candle close price). Horiz movement cools off. RSI. Arrows on RSI show when to go long/short. Nested Red/Green Rectangles on the chart illustrate the MTF RSI oversold and ovebought concepts. When D1 and all other TFs are RSI oversold/overbought expect the strongest buy/sell reaction because of a colossal support/resistance due to price compression. 3) Don't trade, stay on the sidelines and wait for trend change confirmations Good Luck! This is not a financial advice. Use at your own risk!
by RagingRocketBull
XVG, Oversold With Bull Divs And Potential Bottom- RSI is oversold on the daily (27.8) (RSI not included on the chart above). - MACD is making higher lows, while price is making lower lows - bullish divergence. - This bull div is also confirmed on OBV, which you can see here, with multiple ascending trend lines on the lows - Price recently hit a low of 362 - the last bottom before this was 325, so it seems very close to bottomed out. Like most alt coins, it is in a descending pattern, not particularly close to breaking out. But if you are looking for bottomed out coins with divs, this is a great candidate. That said, when looking on the daily, these can take a LONG TIME to play out, so I would not necessarily expect instantaneous movement here. The previous 2 times that XVG showed similar conditions, it pumped for at least 3x.
X
by ScottMelker
1
RSI and crypto trading - DASH example - 100% success rate?What do I look for when using RSI? Using RSI, you can get a framework of when to get into a trade or not. In my experience, this strategy works more than half of the time. So if you are using the proper risk, this strategy should be profitable. In this particular example, the strategy actually worked 100% of the time. Past performance does not guarantee future results. 1. Look for RSI to be reach an oversold level..the furthest below 30 the better. 2. It may be tempting to 'buy the bottom', but not yet! Instead, watch for divergence on a subsequent low. THERE is where you want to get in.... the second oversold RSI reading that is equal to or greater than the first RSI reading. Also, the price obviously must be much lower on the second RSI reading, than the prior lower RSI reading. 3. Set your target... Many times, the corrective bounce travels 1 - 2.618 times the price difference between the corresponding RSI lows. For example: May 8 - RSI 26.6 and price $417 May 11 - RSI 28 and price $378 417-378 = 39 May 14 - RSI 65 and price $444 444-378 = 66 ..... 66/39 = 1.69 Also, as you can see, the 100 MA is a pretty good place to target. AND RSI getting over 60 is a good indication is has run its course. 4. Repeat. This is the 3 hour time frame, but I find this works in most time frames, it just depends on how long you want to stay in trades. It can also be applied counter trend bullish and bearish. When I see this divergence flipped, I use it to know to close a trade or reduce positions. Hope I explained it well enough. Any questions or comments, please have at it. And a like and/or follow is much appreciated. My timing has been pretty good with these lately, but not many people are actually seeing the charts... Thanks for viewing. Travis JMJ - UIOGD
BINANCE:DASHUSD
by Procinctu
1
EURNZD - Going long after multiple cluesHi guys, on the daily chart EURNZD is in oversold condition and it's also testing a key structure zone. That's why i've highlighted the yellow box that you see above. In cases like this, i like to go on smaller timeframes looking for additional clues to take a trade. In this case i've found multiple hints: first of all, on the 4H chart we can see a couple of indecision bars (with big downside wick) and a strong engulfing candle at the end. Here, there's a double bottom with some sort of divergence and the price is headed to the upward direction. I'm going long with stops below the lows, and targets as shown. If you have any question, feel free to comment beneath. Otherwise, see you in the next chart!
Long
by Roker1
Rare opportunity: RSI is the Crypto King!Dear Cryptuminati, I'm so excited. The Eye of the Cryptuminati sees a trading opportunity! To achieve this, the supertrend has to turn to green. Personally, I'm not getting in until then. Over the last three years, an oversold situation in the RSI has led to subsequent price gains. Sometimes there was another test, then it went out again and again. Now we have such a situation again! On average, an oversold RSI occurs at most every quarter. Lastly, an oversold RSI on January 4, 2015 has delivered a false signal, after that 9 signals have risen! Risk-averse traders can build a position by testing the lower black trend line. However, this is risky, as a break could lead to high price losses. Many analysts consider this line to be important. Therefore, there may be many SLs in this range, which could mean a short-term acceleration to the south. 1. TP: 8.680 USD (50 %) 2. TP: 9.730 USD (25 %) 3. TP: As soon as TP 2 is reached, I will set this target price. SL (without reaching TP 1): 6.410 USD Alternative: The supertrend is turning green. When it turns red again, the sale takes place. I'll update this idea if I get on board myself. I am still waiting patiently. Patience is the secret of success of all Cryptuminati. The Eye of the Cryptuminati has spoken. +++++ Did you like the article? Follow me if you like my work and you want me to go on. I post updates on my trades and analyses several times a week! Thank you very much! Risk note: Everything is possible, nothing is necessary. All information is not a buy or sell recommendation.
BITFINEX:BTCUSDLong
by Nik_Navarskij
Many clues form an evidence. EURUSD longHi guys, today i want to talk about why i'm going long on this pair. Starting from our daily analysis, you all can see that price is testing a former level of resistance that now can turn into support. In addition to that, we can also see the RSI is in oversold condition and the price has created an harmonic pattern called Gartley. Going down on lower timeframes, we find again an RSI oversold (4H) and also a pinbar formed right after the completion and an engulfing kicker coming few candles after it. With all these things, i'm confident to go long with stops and targets as shown. If you have questions/ideas, feel free to comment beneath. Otherwise, see you in the next chart!
Long
by Roker1
1