As we can three in the weekly, daily, 1-hour chart of Beyond meat we can see 2 main thing. First the falling wedge and second a regular bullish divergence.
1. Falling Wedge We can see it clearly in all the charts forming with the 2 main trendlines forming it with the purple colour.
2.Divergence We can spot the 1st divergence in the daily chart with the blue colour when as price dropping the rsi indicator is rising. The same thing we can see in the 1-hour price chart
SCENARIO Both the falling wedge and the regular bullish divergence indicates that in sometime the price will break the wedge with breakout, and ultimate go to the support at 136$
ความคิดเห็น
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Testing the strong resistance at 136$. lets see how it will go
Remember you have set your RSI on 14. You cannot go back more than 14 periods to make your divergence valid.
Half november you had valid divergence, but not at this moment.Lot's of people make this mistake.
we_axolotl
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@tvpolo, Thank you for your advice, i am in the process of learning so i appreciate your comment. So the 14 period rsi measures divergences in a 14 day cycle?
tvpolo
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@panoschs, No problem. If you set RSI on 14 (which is standard) and your timeframe on Daily, the RSI measures strenght of the last 14 days. It's not black & white so there is some margin to where a valid divergence can form. But you can not put your RSI on 14 and timeframe on 1D and then draw a divergence-line on the RSI which starts in October en finishes in March. This is a 6 month period (about 180 days) and you can not expect the RSI which measured only 14 days to give you a valid divergence-signal. If you put your timeframe on weekly it will measure 14 weeks and the story will be different.
we_axolotl
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@tvpolo, I got it hehe! Thank you very much for your explanation!!
Half november you had valid divergence, but not at this moment.Lot's of people make this mistake.