This is a work in progress. I am not trading off this idea (yet); I'm waiting to see whether it develops as I expect in the future to make sure I'm not seeing patterns where there are none.
Spotting highs:
Teal lines = bearish divergence. This is where the RSI chart diverges from (does the opposite of) the price chart.
Basically: price goes up, while RSI goes down.
Red dashed line on the RSI chart = "Look out for Divergence when RSI goes above this line"
Spotting lows
Green dotted line on RSI chart = Rebounds often (but not always) start from below this line. Some rebounds start from way above this line though.
Study carefully
- some highs (divergence) are much less compelling than others.
- some lows indicated on this chart are much less compelling than others.
Disclaimer: I'm doing this as a charting exercise to learn charting and practice techniques I've learned from others - I am not an experienced trader.
Spotting highs:
Teal lines = bearish divergence. This is where the RSI chart diverges from (does the opposite of) the price chart.
Basically: price goes up, while RSI goes down.
Red dashed line on the RSI chart = "Look out for Divergence when RSI goes above this line"
Spotting lows
Green dotted line on RSI chart = Rebounds often (but not always) start from below this line. Some rebounds start from way above this line though.
Study carefully
- some highs (divergence) are much less compelling than others.
- some lows indicated on this chart are much less compelling than others.
Disclaimer: I'm doing this as a charting exercise to learn charting and practice techniques I've learned from others - I am not an experienced trader.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.