An R.S.I perspective:
3 occasions r shown on the pic. each and every time we have moved up after a divergence on rsi and trend line violation on the upside of rsi line and price line as well. But can anybody see the difference between the rsi formation of present with the last 2 times? there is two type of divergence we can get in a bullish or bearish divergence.
1) bullish/bearish divergence
2) Failure swing. (which carries much more importance than normal divergence)
this is the divergence with the price line only but one bottom has to be above/below the oversold/overbought zone. This higher bottom above/below oversold/overbought zone symbolizes more strength than a normal divergence does.
so in first two occasions we have got failure swing+trend line violation on the upside. on first occasion we got two failure swings b4 price moved up and broke the t.l and gave a brkout. that's called a triple bullish divergence. more strong one.
But what we have got now in third scenario.
only one divergence (not a failure swing).
RSI successfully tasted the trend line. (is one of the finest signal in oscillators). (a fresh shorting opportunity without a doubt)
Price far away of breaking down trend line.
so, what can we conclude?
Still it's a prefect shorting scenario. If not , it's not a buying scenario at all.
Thank you.
3 occasions r shown on the pic. each and every time we have moved up after a divergence on rsi and trend line violation on the upside of rsi line and price line as well. But can anybody see the difference between the rsi formation of present with the last 2 times? there is two type of divergence we can get in a bullish or bearish divergence.
1) bullish/bearish divergence
2) Failure swing. (which carries much more importance than normal divergence)
this is the divergence with the price line only but one bottom has to be above/below the oversold/overbought zone. This higher bottom above/below oversold/overbought zone symbolizes more strength than a normal divergence does.
so in first two occasions we have got failure swing+trend line violation on the upside. on first occasion we got two failure swings b4 price moved up and broke the t.l and gave a brkout. that's called a triple bullish divergence. more strong one.
But what we have got now in third scenario.
only one divergence (not a failure swing).
RSI successfully tasted the trend line. (is one of the finest signal in oscillators). (a fresh shorting opportunity without a doubt)
Price far away of breaking down trend line.
so, what can we conclude?
Still it's a prefect shorting scenario. If not , it's not a buying scenario at all.
Thank you.
