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Relative Strength Index (RSI)

How to use Implied Volatility Index to analyze Bitcoin▮ Introduction Bitcoin is known for its price volatility. Analyzing the price chart alone is often not enough to make buy and sell decisions. Implied volatility indexes such as DERIBIT:DVOL and VOLMEX:BVIV can complement traditional technical analysis by providing insights into market sentiment and expectations. ▮ Understanding DVOL/BVIV DVOL and BVIV measure the expected implied volatility of Bitcoin over the next 30 days, derived from real-time call and put options. DVOL is calculated by Deribit, the world's largest Bitcoin and Ether options exchange. BVIV is calculated by Volmex Finance; the data is extracted from exchanges (currently Deribit and OKX), and then combined into a single set. * In addition to Bitcoin, it is possible to analyze Ethereum-specific instruments through the ticks DERIBIT:ETHDVOL and VOLMEX:EVIV, whose line of reasoning is the same. ▮ Interpreting the chart 🔶 High DVOL/BVIV values ​​indicate that the market expects greater volatility in the next 30 days. This is usually associated with uncertainty, fear, or expected major events. 🔶 The index does not indicate the direction of the price, but rather whether volatility will increase or decrease. 🔶 Low values ​​indicate an expectation of lower volatility and are usually associated with calmer and more optimistic markets. 🔶 To get an idea of ​​the expected daily movement of Bitcoin, simply divide the DVOL value by 20. For example, a DVOL of 100 indicates an expected daily movement of 5%. 🔶 Divergences between the price of Bitcoin and DVOL/BVIV can signal inflection points. 🔶 Price rising with a drop in DVOL/BVIV may indicate exhaustion and a potential top. 🔶 Price falling with a drop in DVOL/BVIV may indicate exhaustion and a potential bottom. ▮ Example The price of BTC here is at the top in white. The DVOL and the RSI of DVOL are both in red. The reason I put the RSI here is that it is easier to analyze DVOL, since the values ​​are in a fixed range, therefore easier to interpret. On March 25, 2022, the RSI shows a contracted value of 30, that is, low implied volatility. This foreshadows a period of calm that precedes a period of agitation. In this case, the “agitation” soon materializes in a period of price decline. When the RSI then reaches the upper limit range, at 83 (on May 12, 2022), a peak in volatility is characterized. Then, after that, it begins to decrease. This decrease in volatility in DVOL corroborates the moment of Bitcoin’s lateralization within the orange box. ▮ Conclusion Although DVOL and BVIV should not be used in isolation, they can be valuable tools for confirming price chart signals and anticipating major movements. Incorporating implied volatility analysis into your strategy, can improve the timing of entries/exits and help manage risk. ⚠️ But remember: Just because a strategy worked in the past does not mean it will work forever. Past profitability is no guarantee of future profitability. Do your own analysis and risk management.
INDEX:BTCUSDEducation
by andre_007
11
Could EUR/GBP see .8500 and Below?! Here I have EUR/GBP on the 1Hr Chart! We can see that following the 3rd Divergent High @ .86248, price makes a steep Decline breaking the Previous Higher Low @ .85757 and creating a LOWER LOW @ .85496 turning this once Uptrend into a Downtrend! After the New Low is created, we see price makes a textbook Retracement back to the 61.8% Fibonacci Level @ .85783 which happens to test the previous Higher Low to then proceed back down to close for the week just above the New Low! I believe we could be witnessing the Confirmation of an Elliot Correction Wave coming where based on the ABC method: -Prices' LH correction marking our B Point indicates that based off our Fib Ext Tool, we could see price Decline to the Range Target of ( .8457 - .84282 ) -Price Breaking the A Point will be Confirmation of potential Selling Opportunities *.8500 will be the next area we will see Price wrestle with once it breaks the Lower Low @ .85496 Indicators: -Bearish Reading- - Price is working BELOW my DEMA - Flattening of the 200 EMA - RSI BELOW 50 after creation of LL -BBTrend printing Red Bars
Short
by Novi_Fibonacci
1
How to Read the RSI Indicator: The Market's Lie DetectorAttention TradingViewers, market gurus, and Instagram influencers, this one indicator goes hard whenever it’s onto something. Let's talk about the RSI — the Relative Strength Index . This bad boy is like the lie detector test of the market, calling out overhyped moves and under-the-radar opportunities. What’s RSI All About? The RSI is a momentum-based oscillator that captures the speed and change of price movements. It operates on a scale of 0 to 100, and if you know how to read it, it’s like having X-ray vision into the market’s moods. The best part? It’s super easy to use — slap it on any chart, any time frame and let it do its thing. The Numbers Above 70 : Overbought alert! If the RSI shows a reading above 70, the trading instrument may have been partying a little too hard. Anywhere above 70 means that it’s flashing “overbought” – like a sugar rush that’s about to crash. Traders who follow the RSI usually interpret this as a signal to sell and move out of the asset before the line reverses course and dives back under the high-water mark. Sometimes, however, the price keeps climbing well above 70. Below 30 : Now we’re in “oversold” territory – it’s like spotting a hidden gem in a bargain bin. When RSI drops below 30, the market’s saying, “This thing’s been beaten down, but maybe – just maybe – it’s time for a comeback.” Keep in mind that sometimes the dip may keep dipping. How It’s Calculated RSI is all about relative strength — it compares the magnitude of recent gains to recent losses. Picture a tug-of-war between bulls and bears. The RSI score tells you who’s winning the battle right now, but also hints at who might be running out of strength. Trading with RSI Overbought? Maybe Sell (obligatory DYOR) . When RSI hits 70 and above, you might be looking at a market running out of fuel. You may start thinking about trimming your position, or at least keep an eye out for a reversal. After all, what goes up must come down (except maybe Bitcoin BTC/USD ?) Oversold? Maybe Buy (obligatory DYOR) . If the RSI drops to 30 and below, it could be a signal to start looking for a buying opportunity. The market is going through a meltdown and sometimes that’s your cue to go bargain hunting and snap up some discounted assets. Just make sure that your stock or crypto of choice isn’t falling for a specific reason — no indicator can save you from an actual rug pull. The Sweet Spot — Divergences: Ever notice when the RSI and price action don’t agree? That’s called a divergence, and it’s like catching the market in a lie. If the price is making new highs but the RSI isn’t, or vice versa, it’s a clue that something fishy’s going on and you may want to be on the lookout for a sur- price reversal. Bonus Tip: RSI in Different Timeframes Wanna get fancy and earn some bragging rights? Use RSI across different timeframes. A stock might be oversold on the daily but overbought on the weekly. By spotting the trend across different time frames, you can pick your desired time frame to trade in and follow closely. The higher the time frame, the longer the time horizon for the move to actually pan out. So, there you have it – the RSI. It’s not a crystal ball, but it’s pretty close. Use it wisely, and you might just outsmart the market — or at least stay ahead of the next big move. Keep those charts hot, continue learning about technical analysis and go smash those trading goals of yours. 🔥
Education
by TradingView
17
Zero Spread Milestone: Strategic Trade in Micro Yield FuturesIntroduction The current market scenario presents a unique potential opportunity in the yield spread between Micro 10-Year Yield Futures (10Y1!) and Micro 2-Year Yield Futures (2YY1!). This spread is reaching a critical price point of zero, likely acting as a strong resistance. Such a rare situation opens the door for a strategic trading opportunity where traders can consider shorting the Micro 10-Year Yield Futures and buying the Micro 2-Year Yield Futures. In TradingView, this spread is visualized using the symbol 10Y1!-CBOT_MINI:2YY1!. The combination of technical indicators suggests a mean reversion trade setup, making this a compelling moment for traders to act on such a potential opportunity. The alignment of overbought signals from Bollinger Bands® and the RSI indicator further strengthens the case for a reversal, presenting an intriguing setup for informed traders. All of this is following last Wednesday, July 31, 2024, when the FED reported their decision related to interest rates where they left them unchanged, adding further context to the current market dynamics. Yield Futures Contract Specifications Micro 10-Year Yield Futures (10Y1!): Price Quotation: Quoted in yield with a minimum fluctuation of 0.001 Index points (1/10th basis point per annum). Tick Value: Each tick is worth $1. Margin Requirements: Approximately $320 per contract (subject to change based on market conditions). Micro 2-Year Yield Futures (2YY1!): Price Quotation: Quoted in yield with a minimum fluctuation of 0.001 Index points (1/10th basis point per annum). Tick Value: Each tick is worth $1. Margin Requirements: Approximately $330 per contract (subject to change based on market conditions). Margin Requirements: The margin requirements for these contracts are relatively low, making them accessible for retail traders. However, traders must ensure they maintain sufficient margin in their accounts to cover potential market movements and avoid margin calls. Understanding Futures Spreads What is a Futures Spread? A futures spread is a trading strategy that involves simultaneously buying and selling two different futures contracts with the aim of profiting from the difference in their prices. This difference, known as the spread, can fluctuate based on various market factors, including interest rates, economic data, and investor sentiment. Futures spreads are often used to hedge risks, speculate on price movements, or take advantage of relative value differences between related instruments. Advantages of Futures Spreads: Reduced Risk: Spreads generally have lower risk compared to outright futures positions because the two legs of the spread can offset each other. Lower Margin Requirements: Exchanges often set lower margin requirements for spread trades compared to single futures contracts because the risk is typically lower. Leverage Relative Value: Traders can take advantage of price discrepancies between related contracts, potentially profiting from their convergence or divergence. Yield Spread Example: In the context of Micro 10-Year Yield Futures and Micro 2-Year Yield Futures, a yield spread trade involves buying (or shorting) one contract (10Y1! Or 2YY1!) while shorting (or buying) the other. This trade is based on the expectation that the spread between these two yields will move in a specific direction, such as narrowing or widening. The current scenario (detailed below), where the spread is reaching zero, suggests a significant resistance level, providing a unique trading opportunity for mean reversion. Analysis Method Technical Indicators: Bollinger Bands® and RSI 1. Bollinger Bands®: The spread between the Micro 10-Year Yield Futures (10Y1!) and Micro 2-Year Yield Futures (2YY1!) is currently above the upper Bollinger Band on both the daily and weekly timeframes. This indicates potential overbought conditions, suggesting that a price reversal might be imminent. 2. RSI (Relative Strength Index): The RSI is clearly overbought on the daily timeframe, signaling a possible mean reversion trade. When the RSI reaches such elevated levels, it often indicates that the current trend may be losing momentum, opening the door for a reversal. Chart Analysis Daily Spread Chart of 10Y1! - 2YY1! The main article daily chart above displays the spread between 10Y1! and 2YY1!, highlighting the current position above the upper Bollinger Band. The RSI indicator also shows overbought conditions, reinforcing the potential for a mean reversion. Weekly Spread Chart of 10Y1! - 2YY1! The above weekly chart further confirms the spread's position above the upper Bollinger Band. This longer-term view provides additional context and supports the likelihood of a reversal. Conclusion: Combining the insights from both Bollinger Bands® and RSI provides a compelling rationale for the trading opportunity. The spread reaching the upper Bollinger Band on multiple timeframes, along with an overbought RSI, strongly suggests that the current overextended condition is potentially unsustainable. Additionally, all of this is occurring around the key price level of zero, which can act as a significant psychological and technical resistance. This convergence of technical indicators and the critical price level points to a high probability for a potential mean reversion, making it an opportune moment to analyze shorting the Micro 10-Year Yield Futures (10Y1!) and buying the Micro 2-Year Yield Futures (2YY1!) as the spread is expected to revert towards its mean. Trade Setup Entry: The strategic trade involves shorting the Micro 10-Year Yield Futures (10Y1!) and buying the Micro 2-Year Yield Futures (2YY1!) around the price point of 0. This is based on the analysis that the spread reaching zero can act as a strong resistance level. Target: As we expect the 20 SMA to move with each daily update, instead of targeting -0.188, we aim for a mean reversion to approximately -0.15. Stop Loss: Place a stop loss slightly above the recent highs of the spread. The daily ATR (Average True Range) value is 0.046, so adding this to the entry price could be a way to implement a volatility stop. This accounts for potential volatility and limits the downside risk of the trade. Reward-to-Risk Ratio: Calculate the reward-to-risk ratio based on the entry, target, and stop loss levels. For example, if the entry is at 0.04, the target is -0.15, and the stop loss is at 0.09, the reward-to-risk ratio can be calculated as follows: Reward: 0.19 points = $190 Risk: 0.05 = $50 Reward-to-Risk Ratio: 0.19 / 0.05 = 3.8 : 1 Importance of Risk Management Defining Risk Management: Risk management is crucial to limit potential losses and ensure long-term trading success. It involves identifying, analyzing, and taking proactive steps to mitigate risks associated with trading. Using Stop Loss Orders: Always use stop loss orders to prevent significant losses and protect capital. A stop loss order automatically exits a trade when the price reaches a predetermined level, limiting the trader's loss. Avoiding Undefined Risk Exposure: Clearly define your risk exposure to avoid unexpected large losses. This involves defining the right position size based on the trader’s risk management rules by setting maximum loss limits per trade and overall portfolio. Precise Entries and Exits: Accurate entry and exit points are essential for successful trading. Well-timed entries and exits can maximize profits and minimize losses. Other Important Considerations: Diversify your trades to spread risk across different assets. Regularly review and adjust your trading strategy based on market conditions. Stay informed about macroeconomic events and news that could impact the markets. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CBOT_MINI:10Y1!Education
by traddictiv
Double Bottom w/ Break of Confirmation!! - EGHere I have EUR/GBP on the Daily chart! The Lows @ .83972 & .83827 seem to have found enough Support in this Zone since its last visit back in the summer of 2022! After BOE decided to cut their Interest Rates to 5% on Thursday, we see the end of the week gave us quite a Bullish close above the Lower High @ .8490 CONFIRMING the Double Bottom Reversal Pattern!! With the: -Divergence of Price vs RSI @ Level of Support -Break of Structure from LL to HH -and Price on RSI Above 50 *All that's left is to wait for Price to retrace back down to the .8490 area where the Break of Confirmation of Pattern happened for some potential Buy Opportunities!!
Long
by Novi_Fibonacci
1
ZIG/USDT: Potential Bullish Reversal After Key Support Retest#ZIG/USDT #Analysis Description --------------------------------------------------------------- + ZIG/USDT is currently testing a critical support zone around $0.115 after a strong bullish rally. + The 100-day EMA is acting as dynamic support, suggesting a potential bullish reversal if this level holds. + RSI is around 43, indicating a neutral stance with the possibility of an oversold bounce, leading to higher targets. --------------------------------------------------------------- VectorAlgo Trade Details ------------------------------ Entry Price: Around $0.115 on support confirmation or above $0.145 on a breakout Stop Loss: below $0.09 ------------------------------ Target 1: $0.145 Target 2: $0.21 Target 3: $0.24 ------------------------------ Timeframe: 1D (Daily) Capital Risk: 1-2% of trading amount Leverage: 5-10x --------------------------------------------------------------- Enhance, Trade, Grow --------------------------------------------------------------- Feel free to share your thoughts and insights. Don't forget to like and follow us for more trading ideas and discussions. Best Regards, VectorAlgo
Long
by VectorAlgo
JTO : Take CAUTION - RSI Topout LikelyBINANCE:JTOUSDT The RSI reacts different on every chart, which is often the case with technical indicators. This is also why we advise to find one or two, and learn how they respond on your favorite charts. If you swop around between technical indicators too frequently, you will miss key insights such as these. The charts says bullish for three main reasons : 👉 Bottom out pattern 👉 Higher lows 👉 Hot RSI Two playouts likely for JTO, but for NEAR / LONG term I will label it as BULLISH. Personally using leverage here is too risky for my taste but then again, I favor a modest and low-risk approach. __________________________
Long
by CryptoCheck-
KSMUSDT Analysis: Potential Reversal or Further Decline?✨ Welcome to my channel. Here, we analyze a new crypto project or Forex pair every day. 📅 Let's dive into today's analysis, focusing on the KSMUSDT pair in the crypto market. 🗂 About the Project: Kusama (KSM) is an experimental blockchain platform designed to provide a proving ground for new technologies. It serves as a sister network to Polkadot, allowing developers to build and deploy decentralized applications (dApps) quickly and with lower risk. 📅 Weekly Timeframe Analysis In this timeframe, KSMUSDT has experienced notable fluctuations. The price reached a significant peak before entering a correction phase. Currently, KSM is trading around the $21.18 level, with a key support at $17.38. A stabilization above $24.35 could signal a bullish trend, potentially targeting $37.42 and $55.99. However, a failure to hold above $17.38 might lead to further declines, with the next major support at $14.50. 📅 Daily Timeframe Analysis On the daily chart, KSMUSDT has shown a bearish trend with the price consolidating around $20.44. The key resistance levels are at $24.23 and $27.00. A break above these levels could indicate a shift to a bullish trend. On the downside, a break below the $16.72 level might lead to further bearish movement. The RSI currently stands around 43.95, suggesting potential bearish momentum. 📅 4-Hour Timeframe Analysis In the 4-hour timeframe, KSMUSDT is consolidating near the support at $20.05. A drop below this level could signal further declines towards $16.63. Conversely, a move above $21.20 could indicate a short-term bullish reversal, targeting resistance at $24.28. The RSI is around 47.61, indicating a neutral to bearish sentiment. 📊 RSI Oscillator The RSI is currently ranging between 37.54 and 47.61 on different timeframes. Breaking these levels could provide confirmation for opening positions. However, always use these levels in conjunction with candle patterns and volume analysis to find the best entry and exit points. 📉 Given the current bearish signals in the daily and 4-hour timeframes, alongside the potential trend change in the weekly timeframe, I am inclined to open a short position. However, this is based on my trading strategy. Each trader should base their decisions on their strategies and risk management plans. ⚠️ Please note that this is not financial advice. I'm simply introducing this project to you, and remember always to do your own research. 🫶 If you found this analysis helpful and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
by itsparham96
1
The "Wedge" Confirms the "Nod" - EUHere I have EUR/USD on the 4 Hr Chart! The Head & Shoulders Reversal Pattern took all mid-July to form with Price finally Breaking the Low @ 1.08715 and giving us the New Lower Low @ 1.08256! Price has been working back up to test the Break of Confirmation of Pattern but remains unable to break above, and with this Price Action, we begin to see a Bearish Wedge formation!! This Wedge is a Continuation Pattern and is textbook confirmation to see the Head & Shoulders being true to the Reversal Behavior! *As long as Bears remain solid at the 1.087 level, the Bearish Break to the Rising Support of the Wedge will be Confirmation of the Wedge Continuation Pattern itself, therefore strengthening the Bearish Bias on the Pair to CONTINUE! -We see Price on the RSI is remaining BELOW the 50 reassuring Bearish Pressure -BB Trend Printing strong Red Bars -Fundamentals- EUR - CPI's & GDP (Tue), CPI's (Wed), PMI's (Thur) USD - Consumer Confidence & JOLTS (Tue), ADP Non-Farm/GDP/Pending Home Sales/Funds Rate (Wed) Unemployment Claims ISM Manu. PMI (Thur) Average Hourly Earnings, Non-Farm Employment, Unemployment Rate (Fri)
Short
by Novi_Fibonacci
EURCAD Forex Pair Analysis: Market Trends and Key Levels✨ Welcome to my channel. Here, we analyze a new crypto project or Forex pair every day. 📅 Let's dive into today's analysis, focusing on the EURCAD pair in the Forex market. 🗂 About the Pair: The EURCAD pair represents the exchange rate between the Euro and the Canadian Dollar. It's influenced by factors such as European and Canadian economic data, central bank policies, and global market sentiment. 📊 Weekly Timeframe Analysis In this timeframe, EURCAD has shown significant range-bound movement. The pair is currently testing a key resistance level around 1.50153, with major support found at 1.29621. The RSI indicator shows a reading of 62.21, suggesting the market is nearing overbought conditions but not at extreme levels yet. 📈 If EURCAD breaks above 1.50153, we could see further bullish momentum, potentially reaching towards the next resistance level at 1.57769. 📉 Conversely, if the price fails to break through and reverses, a pullback towards the support level of 1.43037 could indicate a bearish trend continuation. 📊 Daily Timeframe Analysis On the daily chart, EURCAD has been trending upwards since early 2023, with the current price action testing the resistance around 1.50153. The RSI at 63.44 reflects bullish momentum but is close to overbought territory. 🧲 A breakout above 1.50153 could signal a continuation of the uptrend, targeting higher levels. 📉 However, a reversal or stabilization below 1.49002 may indicate a weakening of the bullish trend and potential for a correction. 📊 4-Hour Timeframe Analysis In the 4-hour timeframe, EURCAD recently experienced a strong bullish impulse, followed by a consolidation phase. The pair is currently testing resistance at 1.50182. 📈 For long positions, a breakout above 1.50182 could provide an entry point, with targets at 1.51000 and beyond. 📉 For short positions, key support levels to watch are 1.49188 and 1.48730, with a potential for deeper retracement towards 1.47733. 📊 RSI Oscillator The RSI across the timeframes is currently indicating a mixed outlook: Weekly: 62.21, close to overbought Daily: 63.44, nearing overbought 4-Hour: 46.58, neutral with room for both upside and downside A clear break of the RSI levels, combined with price action confirmation, could help identify potential trade entries. 🧲 Conclusion Given the current bullish momentum in the weekly and daily timeframes, a short-term long position could be considered if EURCAD breaks above 1.50153. However, caution is warranted as the pair approaches resistance, and the RSI suggests potential overbought conditions. A watchful eye on support levels and volume trends will be crucial for assessing the strength of any moves. ⚠️ Please note that this is not financial advice. I'm simply providing this analysis for educational purposes. Always do your own research and consider your trading strategy and risk management plan. 🫶 If you found this analysis helpful and want to support me, please boost this analysis. Feel free to leave a comment or suggest a pair you'd like me to analyze next.
by itsparham96
Beginning of the AJ Bull's END?!Here I have AUD/JPY on the Daily Chart! Beginning in March of 2020 to what seems to be the new High @ 109.372 in July of 2024, we have seen the end of the 5th Wave of Elliot's Impulse Wave! With Prices steep decline to the new LOWER LOW @ 99.209, knocking out the Low of June and Testing the Low of May, these are the conditions needed for what could potentially turn into a Correction Wave!!! The Sellings have BEGUN! -You can see that the RSI after this enormous drop in price Breaking Lows ( Structure) is now operating under the 50 mark & Oversold! -The BB Trend is now printing Red Bars showing signs of Bears in the vicinity! Where might Price go?? -If 99.209 is our True Lower Low we will be working with, I suspect price will make a STRONG retracement! *Potential Retracement Levels* ( 103.091 - 103.691 ) - Golden Zone ( 104.291 - 105.490 ) - 50% / 38.2% -Fundamentals- *Uncertainty of BOJ decision mixed with the suspected COOLING of inflation on AUD may be just the catalyst we need to see this pull off! AUD - CPI q/q & y/y - Tuesday, July 30th JPY - BOJ Policy Rate - Tuesday, July 30th
Short
by Novi_Fibonacci
Comprehensive Analysis of CFX✨ Welcome to my channel. Here, we analyze a new crypto project or Forex pair every day. 📅 Let's dive into today's analysis, focusing on the CFX coin in the crypto market. 🗂 About the Project: CFX, or Conflux, is a decentralized platform designed to facilitate the creation of decentralized applications and to support large-scale commercial use. Known for its unique Tree-Graph consensus algorithm, it aims to provide high throughput and low latency for blockchain transactions, making it a popular choice among developers. 📅 Weekly Timeframe Analysis In this timeframe, CFX has experienced significant movements. Recently, it saw an upward trend reaching a peak, which was a critical supply zone. Following this, the price entered a correction phase with lower volume, suggesting the strength of the previous upward trend. Currently, CFX is at a support level of 0.1081 after a correction phase. 📈 If CFX stabilizes above 0.2336, we can anticipate a bullish momentum potentially pushing the price towards the next resistance at 0.5155. Confirmation of a new upward trend will depend on candle stability above this level. 📉 Conversely, if CFX falls back into the range between 0.1081 and 0.2336, and stabilizes below 0.1081, it indicates a bearish trend continuation. The next critical support level would be around 0.0539. In both scenarios, volume analysis is crucial. A healthy trend should be supported by corresponding volume without any divergence. 📅 Daily Timeframe Analysis On the daily chart, CFX ranged around the 0.1955 level before initiating another downward wave. Currently, there is noticeable bearish momentum, and the price has found temporary support at 0.1421. 🧲 Given the current setup, a stabilization below 0.1421 could signal another bearish wave. On the flip side, if the price moves above 0.1955, it could indicate the start of a bullish trend, targeting higher resistance levels. 📅 4-Hour Timeframe Analysis In the 4-hour timeframe, CFX has pulled back to the SMA99 and reached the resistance at 0.1976. Volume analysis shows a decrease, indicating potential exhaustion of the recent upward movement. 📈 For short positions, the key levels to watch are 0.1976 and 0.2611, where price reactions could provide better entry points. 📉 For long positions, critical levels are 0.1421 and 0.1081. 📊 RSI Oscillator The RSI is currently ranging between 44.24 and 55.86 on different timeframes. Breaking these levels could provide confirmation for opening positions. However, always use these levels in conjunction with candle patterns and volume analysis to find the best entry and exit points. 📉 Given the current bearish signals in the daily and 4-hour timeframes, alongside the potential trend change in the weekly timeframe, I am inclined to open a short position. However, this is based on my trading strategy. Each trader should base their decisions on their strategies and risk management plans. ⚠️ Please note that this is not financial advice. I'm simply introducing this project to you, and remember always to do your own research. 🫶 If you found this analysis helpful and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
by itsparham96
1
Elliott Wave DemonstrationDemonstration of Elliott Wave Principles using Bitcoin chart: Rules: Wave 2 never goes below end of Wave 1 => checked Wave 3 is not the shortest of Wave 1, 3 and 5 => checked Wave 4 never goes below end of Wave 1 => checked Guidelines: Guideline of Alternation: Wave 2 and 4 alternates in form (sharp vs sideways), retracement (shallow vs deep) and duration (long vs short) => checked Guideline of Wave Equality: Two out of three waves (1,3 and 5) tend to be equal in length and duration, Wave 1 and 5 meeting this guideline => checked Momentum is highest during end of wave 3, end of Wave 5 normally creates divergence with price => checked Volume during Wave 3 is normally the highest amongst Wave 1,3 and 5 Relations with Fib ratios: Wave 2 retraced Wave 1 by 78.6% (deep) Wave 3 was equal to 261.8% of Wave 1 (longest) Wave 4 retraced Wave 3 by 38.2% (shallow) Wave 5 was equal to 100% of Wave 1 (Guideline of Wave equality)
INDEX:BTCUSDEducation
by MalayKJ
Dogecoin On The Rise!! .. But For How High??Here I have Dogecoin on the Daily Chart! Starting with Technical Analysis: Since its visit at the High in Dec. 2023 (.0945 - .1020) Support Zone, Dogecoin has had quite the Bullish Run! Currently this rally is being halted @ .1363 as Price is testing not only the (.1280 - .1440) Resistance Zone but the Falling Resistance based off the Highs in March & May! If price is able to overcome these obstacles .. What lies in wait?? ..Previous Highs 1) Price will have to contend with the (.1700 - .1800) Resistance Zone 2) Price will have to contend with the (.1990 - .2200) Resistance Zone .. After that, well lets just focus on the here and now *Based on the bearish pressure Dogecoin is facing considering on the Daily, Price is hitting Resistance Bollinger Bands, we could see a drop to the down side to test the (.1280 - .1300) area this rally was able to Break IF the Falling Resistance is able to Hold Price Below it's current High @ .1363. *IF this drop is contained by the (.1280 - .1300) area and price is able to stay relatively above the 200 EMA, this could be good indication of Bulls in the area ready to push price higher! Now Fundamentals There's already been a lot of hype on the cryptocurrency for those who follow the fundamental side of trading with the ENOROMOUS transaction made with said currency: www.tradingview.com Along with the strong boost to cryptocurrency by the "Pro-crypto stance under Donald Trump's Leadership - should he win - will further fuel enthusiasm." www.tradingview.com *I currently hold 107 Dogecoins but could be looking to add very soon -Stay Tuned!
BINANCE:DOGEUSDLong
by Novi_Fibonacci
2
VERY BULLISH ON FTM. Do Not Miss!High Time Frame POC tapped, Weekly level tapped, previous daily high broken, RSI Oversold, Double bottom pattern, high volume node above (Target) 22% away. Chart looks bullish long term. Calculate Your Risk/Reward so you don't lose more than 1% of your account per trade. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! This is not financial advice. This is for educational purposes only.
by Navitility
QQQ Intraday $100 to $2500 with options RECAPQQQ is shown here on the 15 minute time frame. Overlaid are a HMA 7 and SMA 5 to provide moving average crosses. QQQ made a "M" pattern. Options charts are shown in the updates. First Trade SQQQ is opened at 9:48 for $ 6.00 per call contract times 16 contracts. It is closed at 10:05 less than 20 minutes later at $20.00 per contract. $96 dollars the only risk in the trade is waiting to settle as is the $ 224.00 in profit. ( This is a same day expiration intraday trade) Second Trade QQQ as QQQ has topped and is pivoting down. The second trade of the day is not a same day expiration as it is now Friday afternoon, a put option in the direction of the trend is taken for Tuesday the 20th, there being no puts for the Monday holiday. The floating profit is $ 224 and the strike is set for below the money in the current direction of the trend. A strike of $ 429 selected. The options chart is shown in the updates. The premium was 0.37 so $37 per contract so six contracts were taken for a total of which is $222 or slightly less than the profit on the first trade. The trade is taken at 14:47 market time and closed about 90 minutes later at 15:52 before the close. The contracts sold at close for $ 1.41 each yielding $ 141 per contract or $ 2256 overall. Between the two trades $100 was risked and $ 233 + 2256 or 2489 overall. The Reward to Risk ratio was about 25. The profit and the initial $100 into the trades awaits settlement after the holiday. This trade was made to teach a mentee about the power of options leveraged with narrow expirations to optimize profits and not spend a lot of time in the trade to minimize risk in the market from any number of potentials. Alerts and notifications centered on moving averages and rise or fall of intraday low time frame relative strength are used to lessen screen time. Twenty baggers may not be everyday but then again with practice and patience they can come along often enough.
NASDAQ:QQQ
by AwesomeAvani
BASF - An Investment pick with more than 70% ROI.The stock has been in an up trend. It has broken its all time high in 2021 and in good consolidation for 2 years and broken out of consolidation now. It has broken out of a bullish flag and pole pattern / falling channel pattern in a 3 M timeframe. One may also consider this for a swing opportunity , RSI intact in all time frames. Weekly price action shows, that the stock has broken out of falling channel, retested and reversed Consolidated for 7 weeks. Weekly RSI took support at 60 and bounced. Looks ready for a swing. SL - Previous week low at 3155. Target 1 - all time high, 3880.
NSE:BASFLong
by Rugminik
5
GBP/USD to Track 100-MA Slope? GBP/USD to Track 100-MA Slope? On Wednesday, GBP/USD traders will focus on the UK's July Manufacturing and Services PMI, expected to show slight increases. Although, more significant events will come from the U.S., including the annualized Q2 2024 GDP and the PCE Price Index. The Fed's preferred inflation gauge likely cooled in June, suggesting its efforts to curb prices are working, potentially paving the way for rate cuts in September. Markets expect the Fed to maintain the federal funds rate next week but anticipate a cut in September, according to the CME Group's FedWatch tool. GBP/USD extends the decline from the monthly high (1.3045), pulling the Relative Strength Index (RSI) back from overbought territory. It found support after briefly easing below 1.29 and may track the positive slope in the 100-period SMA.
by BlackBull_Markets
EUR/USD Ready To "Head" Out The Bottom Door?! - EUHere I have EUR/USD on the 4Hr Chart! Price has had quite a bit of trouble dealing with this Resistance Zone @ ( 1.09047 - 1.08841 ) Upon its attempts to Break above all last week Higher and Higher, these attempts failed and on the RSI, registered as Lower and Lower Highs, signaling the Bullishness is FADING! The Last High @ 1.0948 was followed by a decline down to the clearly tested Support @ 1.08755 Now, Price is struggling with the same Resistance Zone as last week, ONTOP of dealing with a Falling Resistance created by the Highs made on the 17th & 18th. If price is unable to go any higher and gives us a Lower Low in the ( 1.0910 - 1.092 ) Area, we could expect to see quite a STRONG REVERSAL chart pattern approaching .. THE HEAD AND SHOULDERS! *If Price Breaks and Closes above 1.09223, pattern INVALIDATED! *If Price Breaks and Closes below 1.08755, pattern CONFIRMED!
Short
by Novi_Fibonacci
Divergence: RSI vs. PriceHey everyone! In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE! Today, I took some time to put together an Educational Video on: 1) What a Divergence Is? 2) How to Spot them! & 3) How to Trade them! I hope you find this helpful! **Tips - Divergence is never good enough to trade alone, YOU NEED CONFIRMATION! - The longer the Divergence takes, the more reliable it is - Change in Momentum is KEY!
Education
by Novi_Fibonacci
6