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Divergence

SNAP Short Options trading can be difficult in times of such market volatility. However fun stocks like SNAP that are not institutionally traded can tend to follow their own trend. SNAP is set to drop in price as every major trend I look at is screaming sell. This is a great put opportunity for a quick scalping. Indicators to look at: Triple Confirm Bollinger Bands have initiated two sell signals based on price divergence and volume. D+ issued a sell signal and you can just look at the past to see how accurate that indicator is. (There is a reason this script cost $$) This script issues buy and sell signals based on divergence. Speaking of divergence, MACD also shows shrinking bullish divergence and would not be surprised to see growing bearish divergence. RSI shows that the stock is overbought while the Kurotoga cloud shows that the price is sitting high above support with plenty of room to fall. I am predicting a $0.75 to $1.00 drop in price for 1.31.23 based on the daily.
NYSE:SNAPShort
by Myantman101
1
XAU/USD Possible BreakdownHello friends. I saw a Strong Trendline Breakdown in Gold and Decide to share with you my opinion. I think Gold is in Overbought Area and It will record some correction in coming days. So i have some reasons for my opinion: 1-In Daily chart we can see a strong Bearish Engulfing candle (as you see in picture below) 2-in Daily chart we can see a Divergence Between RSI and Price in Overbought Area (as you see in picture below) 3-A Strong Bullish Trendline Breaks down in 1H. 4-We reach an important Resistance near the last High and psycological level of 2000. so for this reasons i think Gold experience a little correction in coming days. I think Gold will reach targets like 1900 an after that 1880. I hope you like my idea and i will be happy if you share me your opinion too. Thanks for reading my idea. Just dont forget to set a good Stoploss and enter a trade with at least 1:1 R/R.
TVC:GOLDShort
by TraderAmin-KZ
2
Educational (divergence + volume)Hi guys, in order to spot a divergence you should be careful which timeframe you're looking at. for example in the left picture, the daily timeframe is showing higher highs in price (at each candle) and lower highs in RSI (at each candle). but note that these are not highs and lows and as long as you can't find signs of accumulation and distribution in highs and lows (as long as there's no valid consolidation) you can't name them as highs and lows. so there's no divergence. but in the lower time frame (what is shown is 4h) you can see it more clearer that for every candle in the daily time frame, you have a specific trend in the 4H timeframe. so you can name them as highs and lows and yes, there is a divergence now. also, keep in mind that in the lower timeframe. every time you're making a new high in rsi, you should expect it to be more volatile and be more sensitive in a way that in the next new rsi high, you have less time spent in the overbought area. The next part is about the volume profile. you have less resistance in front of the price movement where there is less volume traded in the past. BUT NOT ALWAYS! less trades made in the past in an area means two things: 1- you can expect the price to move faster and sharper and take less time in that area 2- if the price wants to make a low or high or a pattern, it's less predictable and there's more chance of wrong analysis and fake patterns. Feel free to leave any comments and ask questions!
Education
by Finnovin
📊 Divergence Cheat SheetDivergences, whether bullish or bearish in nature, have been classified according to their levels of strength. The strongest divergences are Class A divergences; exhibiting less strength are Class B divergences; and the weakest divergences are Class C. The best trading opportunities are indicated by Class A divergences, while Class B and C divergences represent choppy market action and should generally be ignored. 🔷 Class A bearish divergences occur when prices rise to a new high but the oscillator can only muster a high that is lower than exhibited on a previous rally. Class A bearish divergences often signal a sharp and significant reversal toward a downtrend. Class A bullish divergences occur when prices reach a new low but an oscillator reaches a higher bottom than it reached during its previous decline. Class A bullish divergences are often the best signals of an impending sharp rally. 🔷 Class B bearish divergences are illustrated by prices making a double top, with an oscillator tracing a lower second top. Class B bullish divergences occur when prices trace a double bottom, with an oscillator tracing a higher second bottom. 🔷 Class C bearish divergences occur when prices rise to a new high but an indicator stops at the very same level it reached during the previous rally. Class C bullish divergences occur when prices fall to a new low while the indicator traces a double bottom. Class C divergences are most indicative of market stagnation – bulls and bears are becoming neither stronger nor weaker. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
by QuantVue
9
SPX - expect short term pullback (bearish divergence)The markt has been more bullish than bearish lately. However it is getting overbought in the near term and a bearish divergence is now seen on the daily chart. Hence some pullback from here will not be too surprising. Bearing in mind divergence usually result in only a short term trend change lasting several candles. I am looking at possible near term SPX support at 3885 (recent pivot low). While SPX managed to break above its 200 day moving average and even the longer term trendline resistence that had proven to be a tough one to crack in the past few months, there are still a lot of skepticism especially when "bad" news (eg mass layouts by big techs) still abound. The fact remains that the bigger picture (say 2 monthly chart) remains in a sideway "diamond pattern" consolidation. Assuming the market is indeed on the recovery, It will be weeks (or even months) more before the 200 day moving average can flatten and turn up. Hence, SPX could continue to whip saw around the 200 day MA for a while. There are more and more stocks that are forming/have formed basing patterns, ready (or have already begun) to reverse into an uptrend. The way to navigate this market is to trade those stocks showing high conviction technicals. The more we see such stocks, the more we will be convinced the market is probably turning the corner (albeit it will still be volatile for a while until it becomes too obvious). More importantly is also to have strict exit rules (ie stop losses) in place in case we are wrong. Keeping losses small and letting winners run is the way to go although it is definitely easier said than done. 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!
SP:SPX
by Juliac
BTC accumulation phase spring or a massive bear rally ?Hello, It will be a quick one as the chart says it all. Basically, I think the current setup looks a lot similar to the price action we saw at the end of 2018 and the beginning of 2018. 1. BTC made three consecutive lower lows on the 1-week chart, consolidated for a bit then made a new low which was the final one. We saw the same think happening the 15 months. 2. The RSI hit an oversold area around the same level as the one from 2018 while also printing a bullish divergence for the first time ever for BTC (or at least I could not find any older). 3. Volumes increased above the average between the 3rd and 4rd low on both occasions. 4. The price of BTC hit the long-term diagonal support and used it to rebound on both occasions. 5. BTC broke above the 21-period EMA with a solid green candle back then and now. The time of the green candle that broke above the short-term EMA found the RSI in the exact same state and place on its chart as back in 2019 I think it is quite possible we see a significant rally at least up to the first downtrend correction near $46,800 before a significant pullback. This will be in line with the 2018/2019 rally, also relatively similar in terms of percentage growth. Such a move will be normal in the state of disbelief, but it does not exclude a new low afterwards just like it was the case back in 2019/2020. So the "recession" and "long bear market" scenarios can still come to live. Let me know what you think in the comments
Long
by FutureBlockchain
3
BTC Bearish divergence and VWAP rejectionThis morning I drew this rising wedge and clear and long-lasting bearish divergence on my waves trend oscillator. I used a 30m time frame for better resolution, which also applies to the 4h chart. It was clear we had to break out today or tomorrow, so it happened while I was asleep. I would be so angry because I missed this dip if it wasn't for perfect VWAP rejection on the price bounce back. We can see here that price is struggling to go over bigger history volume action, shown on VRVP. And the hole on VRVP that I explained in my previous idea - remains. Smaller time frames will push the price as much as possible, but I believe we are looking at lower tops and bottoms from now on. 1D was overbought at a 100 level two days ago. 100!!!
Short
by RockinHood
2