ilmscore | Prediction Details
"for the bearish version of this strategy we are still on the four hour chart now and what are we looking for on the four hour chart what's our condition well for a bearish version of this we want to see the rsi indicator go above 70 and show us an overbought scenario here on the four hour chart so let's click ahead here with the market and see what happens do we get overbought not yet are we overbought now well an easy way is to look right over here whenever i hover over the price and if it's above 70 that means the rsi is above 70. so obviously at this point we're at 70.88 we can now do what our condition number one is met we have overbought on a four-hour chart we can now drop down to the one-hour chart here on the one-hour chart what are we looking for we're waiting for either a double top or some type of other chart pattern like a head and shoulders pattern so if we go ahead and click play here you will see that eventually this would not be a double top by the way this is not enough in between we only have one candle in between before that next stop do not count that as a double top you'll learn more about that again if you go over here to the chart pattern video we did about a month ago but let's go ahead and click play as you can see we're moving around a bit and now what has happened at this point we have one top the neckline of the double top and then pushing up we have another top right here this double top qualifies as a valid double top for that reason with that being the case now what are we waiting on we have condition number one met with four hour being overbought we have condition number two a valid double top we're now looking for our entry which is going to be a convincing red candle so let's see if we get that convincing red candle yes we do we get a red candle here that closes below the last candle that's pretty convincing to me so what we would be doing is placing an order there having a stop loss above our previous swing high because it's higher than this swing eye so we want to make sure the stop-loss is above the highest swing high of the double top targets could go down at previous structure which i'm seeing as this level right here and there we go this is our trade setup and with that being the case we'll go ahead and click play we got pretty close to the stop loss but then the market did in fact turn around push down and hit our target"
By The Trading Channel (The Trading Channel) | September 30, 2021 | Pending
From video
The Only RSI Indicator Trading Video You Will Ever Need... (Beginners Guide) 00:13:37 - 00:15:57
Interpreted Prediction
A bearish reversal strategy involves seeing the RSI go above 70 on the 4-hour chart, then looking for a double top chart pattern on the 1-hour chart. Entry is confirmed by a convincing red candle, with a stop loss above the highest swing high of the double top and targets at previous structure levels.

Prediction Details

Topic
RSI Strategy - Reversals (Bearish)

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