Today on Nifty, It was a bear trap after consolidation, Generally, we wait for a strong 15-minute candle when breakout/ breakdown happens. Today after the breakdown Nifty again started an upward journey, Most people thought it's going for Retracement Maybe. It spent some time on the breakdown Point.
At this time if we see RSI, It was showing strength and was indicating that Nifty will go up and it was Fake Breakdown. In the past 3rd Candle RSI was at 33 and then at the same price level it was at 38, It was a clear signal that It's Bear Trap.
RSI divergence help to pick easy trade.
NOTE: Just compare past some candles for RSI divergence, Do not go with a long trade setup. Its most useful in intraday trade
At this time if we see RSI, It was showing strength and was indicating that Nifty will go up and it was Fake Breakdown. In the past 3rd Candle RSI was at 33 and then at the same price level it was at 38, It was a clear signal that It's Bear Trap.
RSI divergence help to pick easy trade.
NOTE: Just compare past some candles for RSI divergence, Do not go with a long trade setup. Its most useful in intraday trade