How to REALLY Trade Divergences (One of My Favorite Entries)This tutorial might be short, but it is packed with potent information on how to REALLY trade divergences.
Divergences are one of the BEST ways to catch market reversals. However, from what I have seen, most people do not have a real process for determining when a divergence is actually confirmed/triggered, and then how to determine targets based on the divergence setup.
In other words, most people don't have a plan for trading divergence.
This video will give you a full plan (Setup/Trigger/Follow Through) for trading divergences.
I give full credit to Jake Bernstein, as this is a concept that I learned from him. He is one of the all time greats, and very worth your time to check out.
I hope you found this video insightful.
Have a great week.
Divergence
Divergence: RSI vs. PriceHey everyone!
In my years of trading, I've really come to love Reversal Strategies and my favorite is in the form of a DIVERGENCE!
Today, I took some time to put together an Educational Video on:
1) What a Divergence Is?
2) How to Spot them!
&
3) How to Trade them!
I hope you find this helpful!
**Tips
- Divergence is never good enough to trade alone, YOU NEED CONFIRMATION!
- The longer the Divergence takes, the more reliable it is
- Change in Momentum is KEY!
How to Confirm a DivergenceI get a lot of messages from you guys talking about how #diivergences seem to play out or not get initiated or that you're having problems entering A #divergence trade.
In this video I'm presenting you a reminder of one of the steps you need to use and it is the the confirmation step that you need to use for confirming whether a divergence is actually going to start going in your favor.
By that I mean that you have already found the divergence and you're simply waiting to enter on the trade because as you should know by now just because you see a divergence doesn't mean it triggers you to start trading in a direction.
Finding the divergence is only step one but finding the entry is based off of the structure in price action that I have outlined in this video idea.
In this video I'm simply using the RSI to find a bullish divergence based off of the difference in bearish price action and you can see clearly how I implement drawing a area around the start of the divergence and wait for price to reach that area. If price never reaches that area then I do not trade bullish according to the bullish divergence instead you simply ignore the divergence and carry on with the rest of your #priceaction #trading.
Time divergence trainingPlease note that the price was able to move from the ceiling during the time period specified in the box, but in the same time box, it could not return that way and it was filled within time. What it means in the market is that the power of buyers is more and there is a positive time divergence.
Introducing the Trendicator (by Stock Justice)In this comprehensive tutorial, we dive deep into the world of the Trendicator, a powerful and innovative trading tool made by @StockJustice that enables traders to identify trends, spot reversals, detect bullish and bearish divergences, and perform multi-timeframe analysis. We delve into the inner workings of this never-before-seen indicator, demystifying its complex algorithms and showing you how to harness its full potential. From understanding the unique features of the Trendicator such as its compression stages, divergences, and MACD crossovers, to learning how to pair it with a Displaced Aggregated Moving Average (DACD) for enhanced precision, we cover it all in a fun and engaging manner.
The tutorial is not just about explaining the Trendicator's functionalities, but it also provides practical tips and strategies for using it in real-world trading scenarios. We discuss how the Trendicator can help traders spot the onset of a trend, gauge its strength, and pinpoint potential reversal points. Additionally, we explain how traders can utilize the bullish and bearish divergences identified by the Trendicator to anticipate market turns and make informed trading decisions.
Lastly, we emphasize the importance of multi-timeframe analysis in trading and demonstrate how the Trendicator can facilitate this process. By interpreting the Trendicator's signals across different timeframes, traders can gain a more comprehensive view of the market and make more accurate predictions. This tutorial is a must-watch for any trader aspiring to level up their technical analysis skills and trade more confidently and effectively. So, get ready to embark on an exciting journey of learning and discovery with the Trendicator!
Introducing the Dynamic Fusion OscillatorHello, it's Stock Justice here! In our latest video, we delve into the world of the Dynamic Fusion Oscillator (DFO) - a tool that blends the power of the Relative Strength Index and the Stochastic Oscillator. I walk you through how it works, from understanding these two base components to how we fuse them to create a balanced and sensitive tool for identifying market trends and reversals.
We dive deep into how the DFO uses moving averages to signal potential bullish or bearish trends, and how divergence within the DFO can indicate trend reversals or continuations. I also touch on the DFO's capacity for multi-timeframe analysis, giving you the bigger picture of market trends.
Wrapping up, I remind you of the DFO's value as a versatile trading tool, but also emphasize the importance of using it alongside proper risk management and other technical analysis components. All in all, this video is a must-watch for traders aiming to enrich their toolkit and navigate the market more effectively!
When a divergence isn't a divergence and price winsA fellow trader here on Trading View needed some help with a trade he is taking.
Commonly when an RSI makes a new LOW and price makes an opposing HIGH this is called a "Bearish Divergence"
When this happens, its expected that price will follow and make new Lows or start moving down.
But what happens when price continues to move up?
Why would it go against the momentum of the all mighty RSI?
How is it possible that price can reject what the RSI wants to do?
Well the answer is VOLUME and who is in control of it. The Bulls or the Bears...and whomever is in control, will always win.
In this video you'll see something else to look out for when trading divergences so you can predicts which way price will breakout.
The easiest way to spot divergences and how to trade them
Welcome to the coffee shop everybody. This is your host and baristo Eric, and in today's video I am giving you a video Lesson based off of my preferences on how you should look for and use RSI Divergences.
THe Oscillator used in this video is The Heiken Ashi Algo Oscillator
Get it free here and always BOOOOOOOOOOST IT!!
There are three problems that people have whether they are experts or when they are novices in spotting Divergence between the RSI and price.
First problem is they don't know where to look because the RS I can have hundreds of high values and hundreds of low values but you need to know which ones are the relevant ones to look at.
The second problem is a common question where people ask "which way will the price go?"
The answer to that is basically the slope of the RSI is the new slope of your price so, if the RSI is angled up your price will angle up. If the RSI is angled down your price will angle down.
Now hold on a minute don't run off and start acting like you know how to trade divergences yet because there's still question number 3.
When will it go in that direction?
Just because you see a Divergence doesn't mean it's going to immediately happen so you need to know what to look for to let you know that it is actually going to go in that direction and when will that Trend begin. So in today's video I do a nice lengthy coverage on how to spot those answers and you can use the oscillator in the video by going to this link.
Bitcoin - For Trading Not for InvestingWhen Bitcoin was trading at around 60,000 level in late 2021 and before that year, whenever friends, acquaintance and participants asked my opinion about investing into cryptocurrency, immediately I knew they may not know much about cryptocurrency.
To clarify, I am not an expert in cryptocurrency, but I know its intrinsic value could not be calculated then and even today, therefore it is an instrument not for investing but for trading.
Let me elaborate, as long as we cannot define its intrinsic value to any so-call an asset, it is not an asset, but an instrument for trading.
When we get into trading, meaning, we have to acknowledge the getting in and out, out also represent to exit the market with either a profit or a loss, it is part of the deal in trading – we have to be quick when we make a wrong decision.
However, if you position yourself as an investor in crypto, you will either always perceive it will break new high or hope that it will someday go back to its former glory.
Throughout the whole tutorial, I will do a recap on how I have spotted this top here in November 2021. I have done this in another personal forum I have back then.
I will go through that and it may seem like a hindsight view, but I will apply the same strategy to the current market using just trendline and divergence.
Bitcoin Futures
Minimum Tick:
$5.00 = US$25
or $1.00 = US$5
Contract Value:
20,000 x US$5 = US$100,000
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Intra-Day Trading TheoryTrading opinions can be made in a very concrete or a structured manner just like how investors study into the financial numbers of the stock they are about to invest into.
Short-term traders also have its numbers they study into, it is the price behaviours or the price data of the instrument they are trading. When these data are converted into a pictorial format, it becomes a chart.
And I am going to share with you a simple illustration on intra-day trading using trendline and divergence, to derive entries.
You will find how this can be done in a very structured manner and you don’t have to guess too much into it.
I have included some links below on my previous videos on trendlines and divergence.
The first rule:
The first about intra-day trading theory is we have to acknowledge the word “intra-day”, meaning all trades are done within the day itself, and we will have to square off all our positions before the market closes. This is Because we do not wish to carry any risks overnight with unexpected gaps.
Micro E-Mini Nasdaq
0.25 = US$0.50
1.00 = US$2
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Is this recent rally a bull rebound of a bear retracement? To make an assessment if the market has turned bear, during the closing second quarter on 29th June 2022, we discussed on the topic “Using S&P to Identify Recession
and on the 19 Jul, 2 weeks ago the tutorial posted here, we studied and expecting this current rebound, topic “Nasdaq a leading indicator of Dow Jones, S&P & Russell”.
In today’s tutorial, I thought of doing a recap between the two videos and explore if the current market and its development, if it is a bull rebound heading to break another new all-time high or if it is a bear retracement?
I have included both the video links below.
Before we get into this topic, please also take some time to read through the disclaimer in the description box below.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Tutorial example:
Micro E-Mini Nasdaq
0.25 = US$0.50
1.00 = US$2
(12,900 - 11,900) x US$2
=US$2,000
(Note: Opposite is also true)
• During the closing second quarter in June, on 29 Jun - “Using S&P to Identify Recession
• On the 19 Jul, 2 weeks ago - “Nasdaq a leading indicator of Dow Jones, S&P & Russell”
Can Interest Rate Be Traded Or Invested?How can we participate in the rise and fall of interest rate? Firstly, we need to understand the difference between interest rate and yield.
Interest rates are a benchmark for borrowers whereas yield is for investors or lenders.
• Interest rates are the fees charged, as a percentage from a lender for a loan.
• Yield is the percentage of earnings a person receives for lending money.
Both move in tandem together, meaning if yield moves higher, interest rates will follow.
Discussion:
• Direction of the Yield in the short-term and
• Direction of the Yield in the long-term
Divergence in a bull market means the bull is losing its momentum, keep a look-out for trigger points that may cause further stress to the market.
Micro 10-Year Yield Futures
1/10 of 1bp = US$1 or
0.001% = US$1
3.000% to 3.050% = US$50
3.000% to 4.000% = US$1,000
Note:
Micro Treasury futures are not micro-sized U.S. Treasury securities. They convey no rights of ownership, nor or they pay or accrue interest.
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
How To Trade Divergence
Divergence simply means separation.. When two similar things things---get separated and start going different directions, you have to consider which direction to follow. That's exactly the concept of divergence. When trading, and you spot a divergence, you want to be sure to understand what they are trying to tell you. In this video, I explain the concept of divergences, how to trade them and what to do when you sight one. Be sure to like, follow and comment.
I want to see those div trades!
DIVERGENCE FOR NOOBSMost people don't understand divergence
Watch this and u will
ENJOY
GRI 2022
For BULLISH divergence look at the LOWs
A higher low on price or the indi is BULLISH
For BEARISH divergence look at the HIGHs
A lower high on the price or indi is BEARISH
If in a bulltrend the indi makes a lower low that's more bullish
If in a beartrend the indi makes a higher high that's more bearish
How To Spot Divergence Without IndicatorsHey y'all… The highly requested—Is here.
Most of us love the idea of a bare chart… but can't seem to let go of the values—by indicators.
One of the most important signals in—Nasdaq100 are divergence.
Pfft… So, I thought… Why not make it easy?
This is my own theory—So… you might not get it on YouTube or books.
I figured this out with experience. Use it wisely; Thank me later.
Cheers,
Lazyluchi
How to Counter Trend Trade (Divergence)This is a quick tutorial on how to trade against the trend for a possible reversal. I think this might be the best strategy online for counter-trend
Feel free to ask any question and don't forget to like the video and follow me for more set ups and tutorials
Thank you
Some interesting indicators I codedSupport&Resistant indicator :Draw lines when fail to make a higher high or lower low.
MACD divergence on chart:Show DIF cannot make a higher high or lower low when candles make a higher high or lower low on the candle chart,not on the MACD chart.
Session break:show Asian/London/New York session by different background color and show previous highest/lowest as session support and resistant and draw lines.
Range:When fail to make a higher high and lower low that form a range.
Please comment ,thanks guys.
Introduction to the BEST All-In-One Oscillators with divergencesHello traders,
A unique indicator displaying many oscillators with a multi-timeframes and regular/hidden divergences options for all oscillators below
1. MACD
2. MACD ZERO LAG
3. RSI
4. DMI/ADX
5. ATR
6. STOCHASTIC RSI
7. TRUE STRENGTH INDEX
8. CANDLE MOMENTUM OSCILLATOR
9. VORTEX INDICATOR
10. COMMODITY CHANNEL INDEX
11. RATE OF CHANGE
☔ Safe crossing mode for RSI/STOCH RSI/CMO: Choose to get alerted whenever the oscillator enters or exits the Overbought/Oversold zone.
Wishing you all the BEST for your trading using it.
Dave
Oscillator Divergence Histogram Setup update 1Link to indicator
Link to sister indicator
Setup video
Early warning alerts
V1.02
-Fixed missing alerts
-Added possibility to alert if more than X number of oscillators have a similar divergence
Hidden Bearish Divergence on any Selected Oscillator
Hidden Bearish Divergence Developing on any Selected Oscillator
Regular Bearish Divergence on any Selected Oscillator
Regular Bearish Divergence Developing on any Selected Oscillator
Regular Bullish Divergence on any Selected Oscillator
Regular Bullish Divergence Developing on any Selected Oscillator
Hidden Bullish Divergence on any Selected Oscillator
Hidden Bullish Divergence Developing on any Selected Oscillator
Hidden Bearish Divergence on multiple oscillators >= value in input 'Alert Options 1)'
Hidden Bearish Divergence Developing on multiple oscillators >= value in input 'Alert Options 1)'
Regular Bearish Divergence on multiple oscillators >= value in input 'Alert Options 1)'
Regular Bearish Divergence Developing on multiple oscillators >= value in input 'Alert Options 1)'
Regular Bullish Divergence on multiple oscillators >= value in input 'Alert Options 1)'
Regular Bullish Divergence Developing on multiple oscillators >= value in input 'Alert Options 1)'
Hidden Bullish Divergence on multiple oscillators >= value in input 'Alert Options 1)'
Hidden Bullish Divergence Developing on multiple oscillators >= value in input 'Alert Options 1)'
I can code it so the new alerts allow the detected divergences to be within X bars of each other if anyone wants that as an option?