Above is a 60-minute chart of RDW, and what has my attention is an interesting cycle rhythm that has been developing over the past several weeks. Markets often move in cycles, and in this case RDW appears to be respecting an approximate six day rhythm. If you step back and look at the swings, you can see that rallies have been showing up roughly every six days, almost like a pulse running through the chart.
That’s important because we are now right at the point in time where if this cycle continues to assert itself, a rally could be due. Based on the prior rhythm, the window I’m watching most closely would be Monday, or Tuesday at the latest. Timing alone is never enough to take a trade, but it does tell me when I should be paying closer attention.
From a price perspective, we also have some interesting confluence. RDW is currently sitting near the bottom of a channel, an area where price may find support. Just below current levels there is also an open gap, which can act as a support zone. When time and price line up like this, it gets my attention. It doesn’t mean a trade is guaranteed, but it does mean the risk-reward may soon become more attractive.
At this point, there are no buy signals. I want to be very clear about that. I’m not anticipating blindly or trying to predict the market. Instead, I’ll be watching for the market to tip its hand. That could come in the form of a bullish reversal candle such as a hammer or an engulfing pattern, a trendline break or possibly signs of improving relative strength versus the overall market.
For now, RDW is simply on my radar. If the cycle rhythm holds and price responds to these support areas, I want to be ready to react. As always, the goal is to stay patient, let the market confirm the idea, and only act when the evidence is there.
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