GBPCAD 240 Long – RSI & PA trendline breaks, bull swing failure
Updated
We have been in a UT channel since 25 Oct 2019 as seen on the 4H chart. We have a recent bottom breakout which could signal a change from the UT in the longer term. Considering the 4H chart though, there are good RSI and PA breaks in the trendlines and a possible new HL.
The RSI break is accompanied with a bullish swing failure – there is some difference of opinion on one topic regarding failure swings, i.e. whether it is valid only within a divergence or not. I have found articles that explain it both ways. However the tenet from JWW is that it is independent from price, and is in the RSI only. If so, the concept of divergence is NA. Also one article clearly states it is independent from divergence. (school.stockcharts.com/doku.php?id=technical_indicators:relative_strength_index_rsi )
Lastly, I can find no mention if the reversal is allowed to cross the 50 RSI line or not.
I am just starting to pay attention to this structure and it seems to be indicative even without the divergence. If anybody has any viewpoint on this topic, please discuss it here. The article on this topic in TV does not reference the divergence requirement. Notwithstanding that, the breaks in the trendlines are valid. I will be looking for a trade at market open. Here is a close-up of the RSI and swing failure.
The RSI break is accompanied with a bullish swing failure – there is some difference of opinion on one topic regarding failure swings, i.e. whether it is valid only within a divergence or not. I have found articles that explain it both ways. However the tenet from JWW is that it is independent from price, and is in the RSI only. If so, the concept of divergence is NA. Also one article clearly states it is independent from divergence. (school.stockcharts.com/doku.php?id=technical_indicators:relative_strength_index_rsi )
Lastly, I can find no mention if the reversal is allowed to cross the 50 RSI line or not.
I am just starting to pay attention to this structure and it seems to be indicative even without the divergence. If anybody has any viewpoint on this topic, please discuss it here. The article on this topic in TV does not reference the divergence requirement. Notwithstanding that, the breaks in the trendlines are valid. I will be looking for a trade at market open. Here is a close-up of the RSI and swing failure.
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