I used RSI a lot and in my opinion short squeeze unlikely happen because RSI fell below 70. If it held at 70, there is much more chance of a squeeze. Now only hope is to hold above 50 so the uptrend may continue. And need RSI to try above 70 again. If not, at best I think we could see $8 max.
For a squeeze to happen we need these conditions: 1) Short squeeze usually happen at overbought condition. RSI needs to hold above 70. 2) Long squeeze usually happen at oversold condition. RSI needs to hold below 30. People often call this "catching a knife".
Hi @thienlovv, I really like your analysis, Could you help me with something? Where can I find a deep dive into RSI applied to EWT?
thienlovv
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@zarathustrafit, thank you for stopping by. I learned from a mentor, Dragonfly Trading System. You can take her course to master RSI to apply for EWT. Really helpful. She has a Youtube channel and Discord. Let her know I refer you to her :D.
zarathustrafit
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@thienlovv, I know her. I was thinking about taking her course. thx bro!
thienlovv
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@zarathustrafit, Sure. Her course is a gem. I fell in love with RSI ever since, because RSI is a leading indicator it fits with EWT for forecasting. I have seen people use MAs with EWT which I think it's a bad combo.
mahajansahab
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@thienlovv try using rsi divergence you will love rsi more than ever. RSI divergence combined with Wavetrend and Supertrend gives supreme leading indications
thienlovv
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@mahajansahab, thanks for your suggestion. I will try this combo. My current combo is Elliott Wave + RSI + Fib.