You usually use RSI Divergence in 1m chart, today you mention about 5m chart, if I am trying to figure out which one to use as new trader , 5m will be better? sometimes I see divergence in 1m but not in 5m
1 min is the most accurate generally speaking. You will need very quick reaction time tho. A lot of people don't like the 1 min just because of that. Some people think it's a lot of noise but it's really the most accurate time frame. If anything hourly daily and weekly are just noise. How the hell do you trade an hourly candle or even a 15 min candle without a stop loss that is 3/4 you're position size? You can't. This is why most traders fail to make money. That and there is no reason to let your position go against you at all. In my opinion if your position goes against you by more than 10 cents you fucked up and should already be out of the trade (for bottom fishing/ counter trend mean reversion whatever you want to call it intraday.) Here is a very valuable tip. Don't worry too much about divergence unless you see a big spike into overbought/oversold conditions. What you are looking for is a big spike into the OB/OS but then a continuation where the price drops lower but the RSI spike is a bit in the opposite direction and it will keep happening until finally the bottom of the divergence formation will be a price drop/rise depending on the direction you are entering but the RSI will be back inside the 70/30 line. I personally think it's easier to spot bottom reversal formations than tops. OH ALSO VERY IMPORTANT!. I don't know why but every trader including Arete here when they share clips of trades they have done seem to zoom way in on the candles making them look boxy and distorting their natural flow. The chart flows more like water instead of boxes stacked on each other. Go to 1 min timeframe and zoom out enough so you can see the whole day on your screen and be able to still see individual candles forming... Check out the RSI then. Do it on different timeframes also, depending on what asset your looking at 5 min might be better but generally stuff like the big caps are best on 1 min timeframe for spotting RSI divergences. Go back and study old charts. NVDA is a good one over any time period as it has a large amount of algo manipulation. Check out the tape from the 14th right before it dipped on the 15th. There is a sublet RSI divergence around 1:34 and basically confirms that NVDA was going to pull back either that day or pre/post market or right at the open like it did infact do. Also go look at NVDA when it crashed from ATH Back on June 20th. Some striking similarities.
Seriously…the algos trading SBUX have to be broken. Red day in market yet the one company with horrible news went up. I hope they’re looking at the trading code
Easy to talk about day trade when already happened. Nobody knows what will happen in the next 5 mins lol just follow the trend until it turns, we all know a lower low signal a trend reversal
Did you mean to put “bear trap” in the thumbnail? A bull trap would typically imply we had a false breakout and are heading lower. We dropped today and your analysis shows you’re bullish.
@@bowlingknight3213 His thumbnail said “bull trap” so yes thanks for agreeing with my point that it should say “ bear trap” in his thumbnail. I appreciate it.
