The role of the StochRSI indicator
2024-10-23


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Since the StochRSI indicator creates waves in any case, I think that using the StochRSI indicator can be of great help in predicting fluctuations.

In that sense, we decided to use the StochRSI indicator again in the evaluation items of the BW indicator.

If possible, we plan to finish modifying the indicator with this version.

The indicators used in this BW indicator are MACD, StochRSI, OBV, and ATR.

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(BTCUSDT.P 1D chart)

After the price fell after October 20, the StochRSI indicator eventually fell from the overbought zone.

After that, it is rapidly falling below the midpoint (50).

As such, the closer the StochRSI indicator gets to the highest point (100), the higher the possibility of a large fluctuation when falling.

Accordingly, you should check the position when entering the oversold zone or turning upward.

Currently, there is a support and resistance zone formed in the 65568.1-65922.3 zone, so the point to watch is whether it can receive support and rise near this zone.

If it falls below the 65568.1-65922.3 zone, you should check whether it can touch the BW (50) area or the M-Signal area of ​​the 1W chart and rise.

To do so, you should check whether there is support near 61149.5-62839.8.

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If it is supported and rises near the volume profile area of ​​66750.0,
1st: 67392.1
2nd: 68447.9-69020.1
You should check whether it is supported near the 1st and 2nd above.

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If it touches BW (100) and falls, it is likely to touch BW (0).

However, since it can rebound near BW (50), you can start trading depending on whether there is support near BW (50) for now.

Since the BW (50) point on the 1W chart is formed at the 65568.1 point, when it shows support near 65568.1-65922.3, you should check whether the StochRSI indicator rises above the midpoint (50) and maintains the state of StochRSI > StochRSI EMA.

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When the StochRSI indicator rises above the midpoint (50), you should start looking for a time to sell, and when it falls below the midpoint (50), you should start looking for a time to buy.

The critical time is when it rises in the oversold zone or falls in the overbought zone.

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Since the StochRSI indicator is showing a faster decline than the price, it seems likely to create a pullback pattern.

If the BW indicator falls below the midpoint (50), the price may plunge, so be careful.

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Have a good time.
Thank you.

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- ​​Big picture

The real uptrend is expected to start after rising above 29K.

The next bull market is expected to touch 81K-95K.

#BTCUSD 12M

1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (overshooting)
4th: 134018.28
151166.97-157451.83 (overshooting)
5th: 178910.15

These are points where resistance is likely to occur in the future.
We need to check if these points can be broken upward.

We need to check the movement when this section is touched because I think a new trend can be created in the overshooting section.

#BTCUSD 1M

If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33.
1st: 43833.05
2nd: 32992.55

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