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Bullish Divergence

Bullish Divergence on the MACDBeginner Friendly I love to see bullish divergence on the MACD(moving average convergence divergence) indicator. It usually always makes a bullish cross to the upside :) Bullish Divergence: To put it simple, when price action is making lower lows while the MACD is making higher lows, its considered bullish divergence. This is a good indication that a trend reversal is about to happen. Of course no one indicator is 100% accurate, so make sure to also evaluate the sentiment of the market/stock. I like to pair this indicator with the RSI (relative strength index) to get a better idea on where I should position myself in the trade. For example, lets take this PLTR chart: Price Action is falling (making lower lows) The MACD indicator is rising (making higher lows) There was a bounce off of the support line as the MACD is crossing up The RSI indicator is pretty low indicating that the stock is oversold These make great conditions for a trend reversal. I would only take this trade once the cross is complete because remember, no indicator is 100% accurate. As stated in my previous post, I wont be hopping into this trade until a trend reversal is signaled because the market is too mixed for me. I found a really awesome post that will help you understand different type of divergence's ---> Types Of Divergence Thanks for reading, leave a comment and me know what you think!
PLong
by diamondparker
2
USD/CAD IN COMING DAYSHello every one U.S. Dollar / Canadian Dollar The USDCAD chart has formed a very big falling wedge this means there is a huge pump is coming to the market but only after breaking of this pattern there is also a regular bullish divergence as well(+RD) which means that this signal is much more reliable Note that the indicators shows the future of the market Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad. Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!! Thank you for seeing idea . Have a nice day and Good luck.
Long
by CobraVanguard
13
SHR bullish divergence on the dailySHR has only been listed on Kucoin for a few months, and during that time it has dumped alot. The SHR/BTC pair dropped almost 90% from the listing price. We can now see a clear bullish divergence forming on the daily, and we can expect a bounce soon. I have entered here at 35 sats. It is one of the few coins that hasn't seen any gains yet in the current market conditions where alts are popping one by one, and I'm sure that this coin too will soon get a share of the joy. Targets range from 70 sats up to 160 sats and I'd recommend taking partial profit along the way. I don't think a stop-loss is necessary for this trade, although a drop below 34 sats would be a bearish sign, so be careful. Good luck!
Long
by jariii
1
USDCAD Critical Pointin this instrument we are having 2 scenarios 1. Long which we can target our bearish's wave Fibonacci retracement levels as we can see there exist a bullish divergence between price and MACD (Green), we have a resistance zone too, which we can have some consolidation or a sharp break trough... 2. Short scenario is also very much possible as we are in a bearish channel so we can have the same trend continued up to our previous support levels or we can have both first short to the support and then long up to the Ultimate long TP please let us know how do you think it may happen???
by BitonGroup
Bullish Divergence Sets Up a Buying Opportunity for Silver!Silver (often traded through SLV/PSLV ETF's) has had a busy week! After getting pumped to 10-month highs on Monday, we saw sellers attack price relentlessly for 2 days. Today, however, was different. Back at old-resistance/(new support?) from 2020 at $24.50-$25 on SLV, we are seeing a basing pattern with hidden bullish divergence on the cumulative volume percentage indicator (lower lows on indicator, higher low on price). This suggests sellers have been more aggressive than buyers, yet price has not dropped further as a result, suggesting there are opportunistic buyers accumulating at these levels. This offers a unique trade opportunity to the long side. If SLV can hold its low of the week (or at least not close a weekly candle below it), it provides reasonable reward-to-risk for a 50-62% retracement towards the highs, and possibly a gap fill. Note how CCMI (or your momentum indicator of choice) is rotating back upwards, approaching the zero-line on the 78min chart (no using hourly charts for indicators on equities or ETF's! Every candle MUST have the same amount of info for indicator readings to be valid!). I expect we see some bullish momentum into the end of the week. Buying a breakout over Wednesday's high or even after a dip under the low that is supported by the daily 50 sma (not pictured, currently at 23.52) makes a LOT of sense.
AMEX:SLVLong
by Red_Ben