Manoj's Trading Diary

Manojbhai,

RSI Also dropeed below 50 in 13.03 candle of which high broken in to 13.09 candle ,similar entries above 14.27 and 14.48.. why and how we would avoid those entries. expecting trend continuation ?

Date: 8 Dec 2016
1. Rsi trading near 75 zone, indicates up trend
with trend entry will be in 40-50 support zone
rsi falls below 50 @ 1130 candle, long above this candle @ 8241 with sl 8235
1224 candle goes above previous high & rsi fails to make new high & trade is exited @ 8260.

2. Rsi falls below 50 @1300 & long is above 1312 candle @ 8248 & sl 8239.
This is rsi positive reversal also for which target comes @ 8266.9
which is achieved @ 1418 candle.

Total trades : 2
total win : 2
total loss : 0
total profit/loss = 19 + 18.9 = 37.9 points

note: There are 2 counter trend trades also which are rsi divergences which i will skip until i master with trend trades.
Short @ 1254 @ 8262 and exit @ 8247 @ 1315
short @ 1418 @ 8263.95 & exit @ 825 @ 1451

are u using rsi from the same TF to decide? in this case longs?

Hi manoj
if time permit please explain target calculation for possitive reversal

Regards

Mukesh

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Author and trader, Andrew Cardwell discovered two other types of divergences which he called positive and negative. These divergences are found in every phase of a stock's movement... whether it's trending or range bound.

The beauty of positive and negative divergences is their ability to forecast price movement.

First, locate positive and negative reversal patterns in the RSI and label the troughs and peeks like this...



Using the corresponding closing prices, plug them into the following formula to get the new up-side price target...


( X - W ) + Y = price target


A down-side price target can be calculated using the negative reversal pattern. Label the peeks and trough on the RSI. Then, using the closing price, calculate the price objective with this formula...


Y - ( W - X ) = price target

Thanks