This is different style or type of analysis i am publishing. To do this analysis i am using RSI indicator along with price action.
In 220 calendar days RSI showed divergence 8 times. Once the divergence was witnessed price moved minimum 3.5% in expected direction.
When i said expected direction let me be clear about divergence concept. Divergence is whenever price moves higher and RSI moves lower or price moves lower but RSI moves higher we call it divergence, as a result of divergence price moves in the direction of RSI. Traders need to understand that, this is not 100% guaranteed system. Hence use stops and targets to do trade management.
Such kind of divergences take place on every time frame chart and can be used for trading.
Currently also we are having divergence on RSI and price, if we apply 3.5% benchmark then we can expect price to fall to 10200 as 3.5 is minimum, it may go lower also. As we are analyzing hourly chart the analysis will be applicable for next few trading days only.
Will be sharing few more charts with same type of analysis in comment section.
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