Maybe if you're looking at little intraday scalp trades on a noisy, unreliable minute chart, but Daily, and more so Weekly, Monthly and even Quarterly chart set ups are quite reliable. Not all of us are looking for quick, "gut instinct", lucky, minute by minute scalps and are quit content to wait and watch the longer time frames and calculate the Discounted Cash Flows for a given company. As for Pair Trading, it is considered a lower risk "arbitrage" strategy by Hedge Funds and used by them precisely for that reason, usually on a Daily chart.

Solid info. Thanks! Do you know a reliable tool or scanner by any chance where I may be able to scan for dollar-neutral pair instruments? Something similar to this picture from Wikipedia?

https://en.wikipedia.org/wiki/Pairs_trade#/media/File:Pair_tool.JPG

Thanks! Just looked these tickers up on TradingView to compare them on an overlay chart, and unfortunately it doesn't look as clean as your graph though lol. I might need to tweek some things still.

I find bearish divergences work better when the price is equal to or higher than the previous peak on a lower RSI, assuming the previous peak triggered an Overbought condition on the RSI. That shows there wasn't a much strength behind the new high and is due to come back down again, much like looking at volume. Vice versa for a bullish divergence (you can see this example of bullish divergence when looking at the bottom of the price action and the lower end of the RSI between "2022" and "March", just before the SPY ripped back up to the trendline again- prices went lower/stayed equal, but the RSI was making higher lows on each dip down).

Looks like a great chart for a Pairs Trade (eg long the lower sector, short the higher sector).

"Fear of Quarantine Camps, Not Covid"

Welp, there you have it guys... China no longer fears COVID.

Bullish AF.