Hi Vahid and fellow members,

So I was looking at currency pairs other than what I usually do and came across this on USDNOK.


I'm not sure what to make of that, so I'm posting my thought here and see if I'm on a right track.

I see there are macd & rsi divergence on the chart. Is that correct?
Also, after a big bull candle (the sixth from the last), there is a doji and inverted hammer or some sort outside of the bollinger band and then a bear candle. Now, if I understand the candlestick video correctly, that bear candle is a sell signal?

So if there is a RSI support break, can I say that it is a validation of the sell signal above (if it is a sell signal) and the price move further down?

Currently, the daily candle is beneath the Bolliinger Band and retesting previous high. RSI is looking overbought. Aside from that I don't see anything else.


Alright thanks.

Hi Nana,

I agree with you about the divergence. It is a strong divergence in fact. There are only two things: 1- the uptrend is so strong and too steep. 2- your RSI support line is too small and its two points are so close to each other.

The conclusion is that, in spite of the above problems, it can still work and reverse the market, but it seems a little harder than usual. So if this is an ideal and perfect reversal trade setup, the answer is no. Market is overbought but it does not look exhausted.

Hi Vahid,

Thanks for the explanation. I will keep that in mind. I have a follow up question though, how can I tell if the market is exhausted?

Hi Nana,

It loses its power and momentum and you can see this on the chart. Like USD-CHF in one hour chart that I showed on one of the videos.

Thanks Vahid. Great videos!
I especially appreciate your personal comment on the trade setup whether it's less favorable or more favorable due to certain market condition. It helps me to learn and understand the market better.

Anyway keep up the good work!

Thank you too Nana