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Divergence

USD Index: Breakdown before the FOMCToday's focus: USD Index Pattern – Nill Support – 105.00 - 104.45 Resistance – 105.10 - 105.55 Thanks for checking out today's update. Today, we have run over the USD Index, breaking down the overall price picture, levels, and patterns and incorporating moving average and RSI into the analysis. The USD index sits in an interesting spot with the FOMC to come. Price still sits in its uptrend, and we saw a nice fightback yesterday from buyers after sellers were once again rejected below 105. price also looks to be losing some upward momentum, and the RSI is also warning us of this, with divergence forming on the RSI. A lot could come down to the FOMC. If we see a hawkish tone, could we see a new move by buyers to test the 105.55 resistance? On the other hand, if it is more to the doveish side, the momentum warnings could come true, and we may see a new test lower by sellers. Sorry that today's update is a touch this way or that way, but it looks like the market is waiting for some direction in the short term. The fund's rate, projections and statement are due at 4:00 a.m. AEST Thursday morning. Have a great day and good trading.
EIGHTCAP:USDX
by Eightcap
Guide: SMA and RSI for Trend ReversalsWelcome, traders! In this comprehensive guide, we'll explore a long-term trading strategy that leverages two powerful technical indicators: the Simple Moving Average (SMA) and the Relative Strength Index (RSI). By the end, you'll have a solid understanding of how to use these tools to identify trend reversals and make informed trading decisions with a focus on the bigger picture. 📉📈 Educational Objectives: Understand the concept of long-term trading and its benefits. Learn how to use the Simple Moving Average (SMA) to identify trends. Master the Relative Strength Index (RSI) for spotting overbought and oversold conditions. Combine SMA and RSI for a comprehensive long-term trading strategy. Recognize key points of trend reversal for well-timed entries. 📌 Part 1: The Foundation of Long-Term Trading Long-term trading focuses on capturing significant price movements over extended periods. It requires patience, discipline, and the ability to ignore short-term noise. 📌 Part 2: Understanding the Simple Moving Average (SMA) SMA is a trend-following indicator that smooths price data to reveal the underlying trend. The 200-day SMA is particularly useful for long-term analysis, indicating the overall trend direction. An upward-sloping 200-day SMA suggests a bullish trend, while a downward slope indicates a bearish trend. 📌 Part 3: Mastering the Relative Strength Index (RSI) RSI measures the speed and change of price movements, helping identify overbought and oversold conditions. An RSI above 70 suggests overbought conditions and a potential trend reversal. An RSI below 30 indicates oversold conditions, potentially signaling a trend reversal to the upside. 📌 Part 4: Combining SMA and RSI for Long-Term Trading Look for confluence: Confirm trend reversals when the 200-day SMA aligns with RSI overbought or oversold signals. A bearish signal could be an overbought RSI crossing below the 200-day SMA, signaling a potential downtrend. A bullish signal might be an oversold RSI crossing above the 200-day SMA, suggesting a potential uptrend. 📌 Part 5: Identifying Points of Trend Reversal Key points to recognize trend reversals include: Divergence: When the price makes new highs or lows but RSI doesn't, it signals a potential reversal. Crossovers: Pay attention to the 200-day SMA crossing above or below the price chart. Volume: Increasing trading volume often accompanies trend reversals. 🚀 Conclusion: Long-term trading can be highly rewarding, but it requires a deep understanding of market trends and the right tools. By combining the SMA and RSI indicators, you gain a powerful strategy for identifying trend reversals and making well-informed trades with long-term potential. Remember that no strategy is infallible, so always employ proper risk management techniques and continuously refine your trading skills. ❗See related ideas below❗ Like, share, and leave your thoughts in the comments! Your engagement fuels our crypto discussions. 💚🚀💚
INDEX:BTCUSDEducation
by Yaroslav_Krasko
1
USDJPY: Thoughts and AnalysisToday's focus: USDJPY Pattern – Ascending Triangle Pattern Support – 146.50 - 144.75 Resistance – 147.92 Thanks for checking out today's update. Today, we have run over USDJPY, breaking down the overall price picture, levels, and patterns and incorporating moving average and RSI into the analysis. The USDSJPY continues to be locked up in a bullish continuation pattern. If we see a break above this pattern, we are interested in how buyers handle being back into a supply and resistance area. An area that stopped the last main rally. On top of that, the RSI is also showing lower highs as price has made higher highs. This could be a sign of divergence, but we will continue to watch if buyers can make a higher breakout. If we see a break lower, we will look to 146.50 and 144.75 as potential support areas. Heads up: BOJ policy rate and policy statement are due on Friday. Have a great day and good trading.
Long
by Eightcap
SDGR - Bullish divergenceSDGR has been in an uptrend since breaking above its Base Formation neckline around $36.30, experienced several retracements of between 38.2% to 50% of each mini swings on the way up. Its most recent retracement is more "severe", now at 61.8% retracement. And with Earnings expected just round the corner (on 2nd Aug), it appears there is some "fear" leading to earnings announcement. Bullish divergence has begun to appear between price and RSI, hence it would be interesting to see if earnings would be the catalyst for the next rebound. NOT suggesting to take a position now (before earnings release) unless you are prepared for earnings risks. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:SDGR
by Juliac
9
#NZDUSD short term buying opportunityprice bullish corrective move forming a bullish channel as you can see clearly in the chart and now price is testing this channel lower boundary which acting as a support. Moreover, price also testing its short term bearish channel line and currently testing its return line which add to possibility of bullish expected move. Also in 30 minutes chart we can see price formed hammer #candle_stick formation and failed to close below its previous low. And in 1H time frame we have reverse bullish divergence.
Long
by mohemati
MACD-Divergences: Assessing Present Varying Exemplifications!_____ Hello Traders Investors And Community, _____ Welcome to this tutorial in which I will analyze the MACD-Divergence and its various types that can come up in the market movements. The MACD is an indicator developed in 1986 and since then established as a primary indicator in the oscillator types besides the RSI or stochastic. The indicator mainly has the function of spotting reversals and potential entry points into the market to catch the appropriate values and upcoming reversal developments. Although the indicator can be used as a single signal for market action only it is best combined with other technical analysis aspects such as candlesticks or volume. The main timeframe to apply the indicator should be the daily timeframe, it can be also applied to higher timeframes such as the weekly to assess broader trends. The indicator can also be applied on lower timeframes such as the 4-hour or hourly however in this case the fake signals getting higher. The MACD consists of 3 main elements, the first is the MACD-Line marked in my chart in orange which is calculated by the 12-day EMA (Exponential-Moving-Average) minus the 26-day EMA. The second element is the signal-line which is a 9-day EMA. Further comes the histogram which measures the distance from the MACD-Line to the signal line and the histogram is positive when the MACD-Line is above the signal-line as well as negative when it is below. The main signal happens when the MACD-Line crosses the signal-line when it crosses from the downside to the upside this is typically seen before a bullish reversal takes place and the same in reverse with the MACD-Line crossing the signal-line down when a bearish reversal takes place, in both cases also the histogram changes from positive to negative or negative to positive. In any case, it is always necessary to combine the MACD with the current price-action happening as in this case comes the interesting part with the divergences happening that can lead to dedicated signals. These divergences happen when there is a discrepancy between MACD and the actual price-action happening indicating a potential change in direction of actual price-action as the MACD shows up with these signs. In any case, it is unavoidable to consider the price-action together with the MACD as otherwise, it can lead to catching a fake-out and getting stopped out of the position what should be avoided in trading. The MACD also does not typically spot overbought or oversold conditions as it is an indicator consisting of EMAs it represents the previously developed price-actions in relation to the ongoing and upcoming price-actions. _____ Regular MACD Divergences: __ Classical MACD Crossover - The Classical MACD Crossover comes up when the MACD-line crosses the signal-line either from the upside to the downside or from the downside to the upside. Both versions can indicate a reversal into the direction the MACD-line crossed the signal-line however the timeframe and structure is important here. When this crossover happens on the lower timeframes below 6-hours it can happen that there are many fake signals with several crossovers behind each other while the price-action is actually trending into one direction. The higher timeframes such as the daily are therefore the best to apply this regular classical MACD crossover. Classical MACD Histogram Divergence - This divergence occurs when the histogram has formed a new high together with the price-action, for example, the histogram forms the new high at 0.3 in the MACD-histogram then the price-action moves further and forms a higher high exceeding the previous one however the MACD-histogram does not do a higher high also while staying below the 0.3 level. This indicates that the market is likely to reverse into the other direction because the histogram does not correspond with the actual price-action and therefore forms a divergence. This can be applied in the reverse direction as well and a good combination would be to look also at the volume or overbought and oversold conditions. Histogram Divergence Fakeout - In this case, it is the crucial part of the histogram divergence. The price-action and MACD fulfilled the initial requirements for a classical MACD histogram divergence and the price-action should markdown after forming the final high and the divergence, however in this case it does not happen instead the price-action moves lower a little bit signaling the possible normal development after this signal and then moves up again exceeding the previous high and stopping out traders who may have entered the market because of the divergence, after that the price-action can markdown finally and move lower, therefore it is necessary to look at the price-action also and see if the market is really ready to markdown after the signal. __ Bearish Regular Divergence Ⅰ - The Bearish Regular Divergence Ⅰ is a divergence in the price-action that marks two important confirmations including this a technical confirmation in the MACD normally seen in price-action. In this divergence, the price-action marks consecutive higher highs while the MACD forms a double-top with the rejection at the upper baseline confirming the double-top. This divergence is likely to reverse the previously established bullish trend to the downside and continue with bearish determinations. It is important to watch out for fakeouts before potentially entering and when this possibility is low it can be a good entry. Bullish Regular Divergence Ⅰ - This is the counterpart to the Bearish Regular Divergence Ⅰ. In this case the price-action marks lower lows in the structure in the best case also with falling volume and momentum while the MACD makes a double-bottom which is a good sign when both form that the price will likely reverse into the bullish direction. A trendline breakout of the previous established lower highs in the downtrend can also add additional confirmation to the final bullish reversal. __ Bearish Regular Divergence Ⅱ - This is a very interesting divergence as it combines the classical price-action formation double-top with the lower highs forming in the MACD. A confirmed double top alone can also be a strong signal for a reversal nevertheless with the additional MACD making lower lows this can add to the main bearish reversal coming in and accelerating it. A valid confirmation will take place when the price-action regularly confirms the double-top with the neckline breakout to the downside. Bullish Regular Divergence Ⅱ - Here is another divergence in which the price-action forms a reliable reversal-formation, in this case, a double-bottom which also can alone be the decisive factor for the final reversal, together then with the higher lows forming in the MACD it is a strong signal to reversing the trend into the bullish direction and similarly to the Bearish Regular Divergence Ⅱ it finally confirms with the neckline breakout by the established double-bottom with proper volume to the upside. __ Bearish Regular Divergence Ⅲ - This divergence has a good and appropriate application in the market formations to form. In this divergence, the price-actions form higher highs while the MACD forms lower lows signaling a bearish reversal to take place. A good confirmation occurs when the price-action closes below the lastly established lows and after that continues also further to form further bearish continuations, it can be a good point to spot the final reversal when the MACD looks like it develops the next lower high. Bullish Regular Divergence Ⅲ - This is the exact counterpart of the Bearish Regular Divergence Ⅲ while the price-action forms lower lows in the structure the MACD develops higher highs showing this given divergence and likely to indicate the bullish reversal to take place sooner or later. Additionally, a falling volume and momentum in the actual price-action will lead to more increased validations followed by an upcoming rise in volatility above previously lower highs, these structures and developments are always also important. _____ Hidden MACD Divergences: __ Bearish Hidden Divergence Ⅰ - This divergence is actually the counterpart to the Bearish Regular Divergence Ⅰ and in this case, the MACD also forms a double top in the structure however unlikely as in the Bearish Regular Divergence Ⅰ in this case the price-action forms lower highs in the structure showing the exceptional weakness of the bulls as the price-action does not manages to maintain further higher highs, this is why the formation is finally likely to confirm bearishly to the downside and the reversal took place. Bearish Hidden Divergence Ⅰ - In this divergence the MACD forms a double-bottom with both lows forming a lower baseline in the MACD-histogram structure while the price-action forms higher lows which is very important here as such a constellation is normally defined as bullish with the possibility to reverse, the double-bottom in the MACD then confirms the further bullishness to establish and likely bullish volatility to show up in the structure, the requirement is that the established uptrend-line does not invalidate to the downside. __ Bearish Hidden Divergence Ⅱ - The next divergence is forming a classical reversal-development with the formation of a double-top in the price-action as the two highs form a horizontal baseline where the price-action rejects while the MACD is developing higher highs in the structure. In this case, the final confirmation sets place when the price-action breaks out below the neckline of the double-top in the structure which is the set-up for the further continuations bearishly to the downside, the best is to wait on the final confirmation before considering moving into. Bullish Hidden Divergence Ⅱ - This classical bullish reversal-formation marks out the potential stopping of the downtrend with two lows building the baseline of a potential double-bottom while the MACD is establishing this lower low structure it is the proper further confirmational part to develop a sufficient bullish reversal which will finally take place when the price-action breaks out above the upper neckline of the double-bottom to complete it and show up with further continuations to the upside. __ Bearish Hidden Divergence Ⅲ - When the price-action forms lower highs that do not maintain new higher highs in an uptrend it is always a sign that the uptrend is struggling and that it is likely to reverse together then with the higher highs divergence in the MACD to form the final bearish reversal has a high possibility to emerge which will validate when price-action moves below the previous lows in the uptrend and continues to the south. Bullish Hidden Divergence Ⅲ - With this form the uptrend and the higher highs structure that developed in the price-action have a tendency to reverse as the MACD forms the lower lows in the structure signaling that the MACD is already doing the markdown that follows also in the price-action. In this case the final confirmation will take place with a breakout below the established ascending trend-line after which a bearish continuation will likely follow up. _____ Therefore moving through all these important different forms the MACD can be a substantial indicator for spotting reversals in the structure when done right. It is always necessary to maintain the objection to the current situation and further technical factors to apply the MACD-divergences rightly. In this manner, thank you everybody for watching, support the idea with a like and follow or comment, have a good day as well as weekend, and all the best to you! Information provided is only educational and should not be used to take action in the markets. _____
BYBIT:BTCUSD.PEducation
by VincePrince
20
15Min Trade Signal XAUUSDTimeframe: 15 MIN Trade Signal #Forex #XAUUSD #TechnicalAnalysis #TradingOpportunity #Divergence #TradingSignal Hey traders! 👋 Let's dive into a potential trading opportunity on the XAUUSD pair using technical analysis. 📊 📉 Previously Bearish Trend: Firstly, on the 15- timeframe, we've been witnessing a bearish trend in the XAUUSD pair. 🐻 🔄 Divergence on HH (Higher High): However, it's crucial to note that recently, we have started to observe a divergence pattern on the HH (Higher High’s). This is an important signal that the bearish momentum might be weakening. 📉🔄 📊 Trade Opportunity: Currently, we are looking at a potential trade opportunity with a Bearish bias. 📈 Sell Limit Level \ Entry Price: 1918.40 🎯 Stop Loss Level: 1920.85 🚀TP1: 1915.90 🚀TP2: 1913.47 💰 Investment Advice: Please remember that trading carries risks, and it's essential to have a well-defined trading plan, proper risk management, and stop-loss orders in place. This analysis is for educational and informational purposes only and should not be considered as financial advice. Make sure to do your research and consider your risk tolerance before entering any trade. Happy trading, and may the pips be in your favor! 🚀📈💰 #HappyTrading #ProfitOpportunity #TradeSmart #
TVC:GOLDShort
by TradingwithBelieve
DIS - Testing Long Term Horizontal SupportDIS has tested it's long term horizontal support @ 79 and it is holding so far. A potential bullish divergence is also seen on its monthly chart which increase its odds for some upside bias for the next 1-3 (monthly) candles. The caveat for divergence is that it only signals a (potential) short term trend reversal, lasting on the average 2-3 candles and does not predict a longer term change. If seen on the monthly chart, then it could mean a potential bounce for the next 2-3 months. And of course, while the odds is good, it is not 100%. While now could be a good time to long some DIS at relatively low prices, there is also a chance that the stock could remain ranged bound for a sometime. Some would prefer to wait till there is clearer momentum (usually above its 200 day moving averge) before establishing a long position Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie stop loss and position sizing) is (probably the most) important! Take care and Good Luck!
NYSE:DIS
by Juliac
FSLY - idea to swing this guyFSLY is in a rising trend with frequent steep pullbacks towards its rising 50 day MA. It appears to manifest a certain swing pattern that is quite tradable Potential to long: 1. when bullish divergence (between price and RSI) begins to appear 3. better if there is also backed by some other supports (eg 50%-61.8% fib retracement levels) 2. wait for 1st bullish candle to long On alert to take profits when: 1. RSI is overbought and one or two small sideway candles begin to appear, or 2. bearish divergence began to form Just an idea! Stop Loss is still necessary if this idea stops working Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie stop loss and position sizing) is (probably the most) important! Take care and Good Luck!
NYSE:FSLY
by Juliac
🔥 Worldcoin Bullish Divergence: Is This The Bottom?WLD has seen a very long period of selling after it initially launched on Binance (as happens often with newly added tokens). However, it appears that this token might have bottomed for the time being. I'm seeing strong bullish divergence on the daily RSI chart. The price made a lower-low, while the RSI made a higher-low, which often signals the start of a change in trend. Still, this is a risky token and a risky entry. However, the potential gains are very high. I'm looking at a longer-term target of 3 USD, potentially even higher next year.
Long
by FieryTrading
16
#GBPNZD buying opportunitutechnical confluences for buying: 1- price is in overall bullish long-term market structure, which seems like followed by a bearish corrective move. (as it seems till now) 2- price has reached 4H timeframe 200 EMA and failing to close below it. 3- In 1H timeframe price formed double bottom and also we have double bullish divergence formation between the last two swing low in 1H time frame, which add to possibility of bullish move. In case this analysis materialize we expect price to at least test its previous lower-timeframe high if not break it to the upside in the direction of higher timeframe
Long
by mohemati
🆘#PERP N-type structure was broken, and RSI diverged.DUMP!🧠The first is the divergence of the RSI indicator, which shows that most investors are leaving the market at a profit. But we cannot open short positions based on this yet, because the uptrend is not over yet. But when we see the N-shaped uptrend broken, we are convinced here that the downside is coming, so we set up a short position✔️ ➡️Now we intend to lock in more than 80% of the profits and move SL to breakeven.
Short
by wolf_king888
DXY Influence on BTC Reversal points 🚀📉 Bear Market Overview: A bear market signifies a prolonged period of price decline and prevailing pessimism. Yet, within this challenging landscape, opportunities for change often emerge. 📊 Detecting Structural Shifts: Keep an eye out for structural shifts on the Bitcoin chart, marked by a series of higher highs and higher lows. These shifts signal a change in market sentiment. 🌟 Catalyst for a Bullish Trend: Such structural breaks frequently coincide with increased buying activity, a resurgence of optimism, and a more favorable outlook for Bitcoin. 🔍 The Crucial Retest: Following structural shifts, it's common to observe a retest of previous highs or significant resistance levels. This retest serves as a vital confirmation of the emerging bullish sentiment. A successful retest can indicate the dawn of a new bull market. 🔮 Navigating the Path Ahead: While recognizing these potential signals is valuable, always exercise caution. The dynamics of financial markets are multifaceted, and not every structural shift leads to a sustained bull market. In conclusion, recognizing the conclusion of a bear market and the birth of a potential bull market involves pinpointing structural breaks on the chart and grasping the importance of retesting old highs. This juncture presents intriguing possibilities for investors. Stay vigilant, stay analytical, and remember – the shift from bear to bull signifies transformation and growth on the horizon! 📊🚀 ❗Check out related ideas below❗ Follow + Like this post, and share your insights in the comments; your engagement fuels the creation of valuable content! 💚💚💚
TVC:DXYLong
by Yaroslav_Krasko
DIVERGENCE CHEATSHEETHello dear traders and investors community! The Divergence Cheat Sheet Divergence occurs when the price of an asset and an indicator, such as the Relative Strength Index (RSI), move in opposite directions. This pattern provides valuable insights into potential price reversals or changes in trends. Detecting Divergence Detecting divergence is crucial for identifying lucrative trading opportunities. By using divergence indicators like the RSI, MACD, or Stochastic Oscillator, we can gain significant insights into market trends and potential price reversals. To pinpoint divergence effectively, follow these steps: Choose an indicator capable of detecting divergence, such as the RSI, MACD, or Stochastic Oscillator. Look for discrepancies between the indicator and the price action. Regular divergence occurs when the price and the indicator move in opposite directions, while hidden divergence occurs when they move in the same direction but at different rates. Monitor the direction of the trend. Divergence can indicate a trend reversal, so keeping track of the current market trend is crucial. Confirm the divergence signal with other technical analysis tools. Divergence is just one piece of the puzzle, so it's essential to use other indicators to validate your trading decisions. Examples of Divergence in Trading Charts Let's examine a few examples of divergence on Bitcoin charts: Strong Bullish Divergence: When lows of the price decreases while the RSI increases, a regular bullish divergence occurs. This signals a potential trend reversal and presents an opportunity for a bullish trade. Strong Bearish Divergence: When highs the price of an asset is rising while the RSI is falling, it indicates a regular bearish divergence. This suggests a potential trend reversal and presents an opportunity for a bearish trade. Medium Bullish Divergence: When the lows of an asset remain equal while the RSI is rising, it indicates a medium bullish divergence. This suggests a potential increase in price, although it may not be a strong upward movement. Medium Bearish Divergence: When the highs of an asset remain unchanged while the RSI is decreasing, it indicates a medium bearish divergence. This suggests a potential decline in price, although the downward movement may not be significant. Weak Bullish Divergence: When the lows of an asset is decreasing while the RSI lows is equal, it indicates a weak bullish divergence. This suggests a potential increase in price, although it may not be a strong upward movement. Weak Bearish Divergence: When the highs of an asset are rising while the RSI remains unchanged, it indicates a moderate bearish divergence. This suggests a potential decline in price, although the downward movement may not be significant. Hidden Bullish Divergence: Hidden bullish divergence occurs when the price creates higher lows while the RSI is creating lower lows. This reinforces an existing uptrend and suggests its strength. Hidden Bearish Divergence: Hidden bearish divergence is observed when the price forms lower highs while the RSI forms higher highs. This indicates a potential weakening of the current uptrend and might signal a trend reversal or a pullback. By recognizing these divergence patterns on trading charts, we can gain insights into potential market reversals, entry and exit points, and adjust trading strategies accordingly. To effectively incorporate divergence into your trading, consider the following steps: Identify the appropriate indicators: Choose reliable indicators such as RSI, MACD, or Stochastic Oscillator that can detect divergence patterns effectively. Learn to spot divergence: Familiarize yourself with the different types of divergence patterns and practice identifying them on price charts. This will help you develop a trained eye for spotting potential trading opportunities. Confirm with additional analysis: While divergence can provide valuable signals, it's essential to use other technical analysis tools to confirm your trading decisions. Look for supporting indicators, chart patterns, or trendline breaks that align with the divergence signal. Set clear entry and exit criteria: Define your entry and exit points based on the divergence signal and your risk tolerance. Consider using stop-loss orders and take-profit levels to manage your trades effectively. Practice risk management: Implement proper risk management techniques, such as position sizing, to protect your capital. Divergence alone should not be the sole basis for your trading decisions but rather an additional tool in your arsenal. Backtest and refine your strategy: Test your divergence-based trading strategy on historical price data to assess its effectiveness. Make adjustments as needed and continuously monitor and evaluate your results to improve your trading approach. Remember, divergence analysis is not foolproof and should be used in conjunction with other technical analysis methods and market factors. Divergence analysis is a powerful tool that can provide us with an edge in the cryptocurrency market. By understanding and effectively utilizing divergence patterns, we can identify potential trend reversals, improve entry and exit timing, and enhance overall trading strategy. Incorporate divergence analysis into your trading approach and combine it with other technical indicators and risk management techniques for a well-rounded and informed trading strategy.
INDEX:ETHUSDEducation
by Vestinda