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Divergence

US Stocks Record High with Record Retrenchment, What's HappeningIn January alone, Microsoft, Google, Meta, and other tech companies have collectively cut more than 21,000 jobs. Furthermore, last year marked one of the worst periods in recent memory, with approximately 260,000 tech professionals losing their jobs. Normally, we expect to see cost-cutting measures during a contraction stage, as was the case during the Dot-com bust, rather than during a period of growth like today. So, what is currently happening? My name is Kon How, my work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities. Micro E-mini Nasdaq Futures and Options: Minimum fluctuation: 0.25 index points = $1.25 Code: MES 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. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME_MINI:NQ1!Short
by konhow
2
UNG ( Natural Gase Futures ETF) Swing trade Short then LONGUNG is shown here on the 15 minute chart with text box comments showing the three trades over 8-9 trading days yielding 25% overall first two trades short then a one day long trade at what may be an early reversal. A pair of hull moving averages 49/140 ( multiples of 7) are used to generate buy and sell signals in golden and death cross fashion. A dual TF RSI indicator is used to support those signals. As swing trades with typical stop losses these were quite profitable with low risk. As an alternative if a trader has options charting available the same strategy/ method can be applied for significantly higher profit with less capital in each trade.
AMEX:UNG
by AwesomeAvani
2
What is Volume Divergence? - Divergence in the US Markets?Whenever we see a divergence, this means they are going through a process of moving apart or deviating from what we are seeing. In this case the US markets, even though it appears to be trending higher, but its activities and especially its transacted volume are telling us otherwise. And what are their implications? My name is Kon How, my work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities. In conclusion: Please note the divergence we are observing here; it does not indicate that the market is going to decline anytime soon. What this means is that the bullish trend we are currently witnessing may be losing some momentum. Therefore, it's important not to become too complacent and assume that the bull market will continue charging indefinitely. During times like these, it's always good to take calculated risks with our investments. Continue to buy on dips with cautiousness. Micro E-mini S&P Futures and Options: Minimum fluctuation: 0.25 index points = $1.25 Code: MES 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. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME_MINI:MES1!
by konhow
The DXY Anomaly: Interpreting the Incoming CorrectionThis week's focus is on the potential for a minor retracement in the DXY (U.S. Dollar Index), highlighted by a noticeable bearish divergence when compared with the 10-year Treasury yield and the 10-year T-Note futures. This divergence is particularly significant as it suggests a weakening momentum in the dollar's recent uptrend. While both the 10-year Treasury yield and the 10-year T-Note futures have succeeded in setting new highs, the DXY has not followed suit, failing to create a higher high. This disparity indicates that the upward movement in the 10-year Treasury yield and the 10-year T-Note futures could be attributed more to a liquidity-driven event rather than a fundamental change in market sentiment towards the dollar. As a result, we can anticipate possible bearish movements in forex pairs where the dollar is the base currency in the coming week. Conversely, in pairs where the dollar is the quote currency, there could be bullish movements. However, it is important to note that these expectations are also contingent on the performance and dynamics of the counterpart currencies in these pairs. Traders should monitor the DXY for early signs of a reversal and adjust their positions accordingly, keeping in mind the broader implications of a weakening dollar on various currency pairs. As always, a comprehensive approach that considers global economic news and geopolitical developments will be essential in navigating the forex market during this period of potential dollar retracement.
TVC:DXYShort
by Wiiso
Double Bottom - UCADHere I have USD/CAD on the 1 HR Chart! Price has outlined a very clear Double Bottom pattern with the two Lows! RSI is giving us a Bullish Divergence which tells me price really wants to work higher from this point! Price has now broken the Confirmation of Pattern! With this PA of now Higher Highs, we look for the next Low to be Higher than the Low of the Double Bottom being our INVALIDATION! Fundamentally this week: USD - Richmond Index (Tue) Flash PMI (Wed) Advance GDP, Unemployment, Durable Goods (Thur) Core CPE (Fri) CAD - NHPI (Tue) BOC Monetary Policy, Rate Statement & Press Conference (Wed) *If price does come down to test this break, I suspect the Support Zone @ Confirmation will be enough to catapult price up into the overhead Resistance Zone and Above!
Long
by Novi_Fibonacci
Potential Head and Shoulders - GUHere I have GBPUSD on the 4Hr Chart! Price had been ultimately traveling sideways but after the Lower High created on Jan. 5th, price has been unable to break it and is in a steep decline after the positive news for USD! Giving us what looks to be a potential Head and Shoulders pattern!! With the very wide "Right Shoulder" theoretically being created, we are now waiting for the Confirmation of Pattern with Price touching the "Neckline" or Support Zone I have marked.
Short
by Novi_Fibonacci
XPTUSD (Platinum) Trend Reversal ahead!Platinum is a rare but highly interesting metal, well suited for many use-cases. One use-case might be to open a short position. For about a week, OANDA:XPTUSD has formed higher lows on the 4h chart. On the other hand - momentum fell on Wednesday, then rose again but then took another dip. As a result of rising prices and falling momentum, we have a bearish divergence situation. This bearish divergence is an indication of a potential trend reversal. There are two indicators that support the hypothesis of a trend reversal: RSI was overbought and now keeps falling MACD is about to cross the signal line Of course, there's no guarantee but there are at least 3 signs (divergence, RSI oversold, MACD crossover) that usually occur when a trend is about to reverse. The profit target is the weekly pivot at around 903.232
OANDA:XPTUSDShort
by TradingClue
Bitcoin Pullback Imminent? The rally in Bitcoin futures has been impressive. But, without question, the rally is showing signs of fatigue. So the question is - are we gearing up for a pullback? Technical Outlook : Concurrent bearish divergence and a declining volume profile is a telltale sign of an impending correction. Why? Put simply, because all of the bulls are already in the market. Meaning that no new buyers bidding up the price. As a result, long liquidation pushes price lower. An initial operative target for a correction would be filling the gap from Dec. 1st and Dec. 4th between 40,390 and 42,500. While this correction would be significant, it may be necessary to sustain the longer-term bull trend. Check out CME Group real-time data plans available on TradingView here: www.tradingview.com Disclaimers: CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CME:BTC1!Short
by Blue_Line_Futures