Bullish Divergence and Oversold on the 1 hr Timeframe
Disclaimer: Things move fast, by the time this is posted indicators my be saying different things, please base your trades on your own research and experience.
We have just reached a 10 day low and bounced off of horizontal support at ~30.8k and ascending support at ~31.4k. The most recent hourly candle closed above both support lines. The long term trend is pointing to a fall out of this large triangle we have been in, but in the short term I think we may have room for a quick long position.
This chart shows some bullish divergence appearing on the RSI on the 1 hr chart, as well as being in oversold territory on this chart and the 4 hour. We also got some nice volume on the first bounce off of the 30.8k level.
I am considering a long position up to the purple target area shown, with profit taking levels at the beginning, middle, and end of the zone. I will not enter into this trade until I see an hourly candle close above the divergence trend line, as well as the ascending support line, with a stop loss slightly below the 30.8k support level.
As you can see if a long position was taken the last time the hourly reached oversold and was held until the first sign of bearish divergence on the RSI, it would have been a nice 10% gain, or more if trading with leverage.
For now I am waiting to see what happens at this very key level before making any moves.
We have just reached a 10 day low and bounced off of horizontal support at ~30.8k and ascending support at ~31.4k. The most recent hourly candle closed above both support lines. The long term trend is pointing to a fall out of this large triangle we have been in, but in the short term I think we may have room for a quick long position.
This chart shows some bullish divergence appearing on the RSI on the 1 hr chart, as well as being in oversold territory on this chart and the 4 hour. We also got some nice volume on the first bounce off of the 30.8k level.
I am considering a long position up to the purple target area shown, with profit taking levels at the beginning, middle, and end of the zone. I will not enter into this trade until I see an hourly candle close above the divergence trend line, as well as the ascending support line, with a stop loss slightly below the 30.8k support level.
As you can see if a long position was taken the last time the hourly reached oversold and was held until the first sign of bearish divergence on the RSI, it would have been a nice 10% gain, or more if trading with leverage.
For now I am waiting to see what happens at this very key level before making any moves.
Komentarz:
The recent 1 hr candle close gave us our first sign of bullish divergence on the lower trendline of the RSI.
I have now began scaling into the trade with my first entry @ 31,235 and will add to my position either when an hourly candle closes above the upper RSI trendline or if we make another lower low on the price with a higher low on the RSI.
Stop losses have hurt me many times, wicking down to close me out of a trade for a loss before making the predicted move and missing potential gains. For now I am keeping a close eye on price action with no stop loss and will add one as we move into profits.
Good luck and trade at your own risk!
I have now began scaling into the trade with my first entry @ 31,235 and will add to my position either when an hourly candle closes above the upper RSI trendline or if we make another lower low on the price with a higher low on the RSI.
Stop losses have hurt me many times, wicking down to close me out of a trade for a loss before making the predicted move and missing potential gains. For now I am keeping a close eye on price action with no stop loss and will add one as we move into profits.
Good luck and trade at your own risk!
Komentarz:
With uncertainty in the markets at such a critical level and the daily RSI crossing under the 50 line I have decided to put up a stop loss at 31550 for a small 10% gain (using 10x leverage) that I expect to get triggered before a large reversal move occurs. I will re enter this trade with a 1 hr candle close above the current upper RSI trendline or a bullish 4 hr candle close, signaling a reversal at key support.
Trade smart and be safe!
Trade smart and be safe!
Zlecenie aktywne:
I posted a new idea building upon this one where I will now be posting updates.
I'm still waiting to see either bullish divergence form on the lows of the the 1 hr RSI or a confirmed breakout from the upper trend line of the 1 hr RSI before entering into a long position.
We may have found our bottom here with a double bottom also showing on the 4 hr chart... time will tell but everything is still pointing to a reversal from this point. Good luck everybody!