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Divergence

The art of trading- Spotting Divergences is a good way to be prepared for a potential trend reversal. - Many peoples are using RSI in a wrong way, as fix point indicator (oversold or overbought). - in reality RSI is a "Momentum indicator". Point to Point. - Divergences most of the time are not enough to enter a position but help you to have more nice cards in your hands. - They can be combined with Trend Lines, Supports/Resistances, pivots, MAs/EMAs and much more indicators. - More information you get on a trend, more is helpful to be accurate. - the reverse of the medal is using too many indicators at the same time can make you confuse and doubt. - Trading is an art but patience a virtue. Happy Tr4Ding !
COINBASE:BTCUSD
by thecryer
4
Using Zigzag to find patternsZigzag is my favourite technical indicator. Usage of zigzag is often misunderstood. People try to find tops and bottoms and complain that it repaints. Well, zigzag is supposed to repaint its last pivot and it should not be used finding tops and bottoms to enter and exit at the right time. Then, how do we use zigzags? Main application of zigzag for me is pattern recognition. Just put zigzag on your chart and observe how easy it will become to identify patterns. The chart below shows double bottom - confirmed by divergence on lower pivots and continuation on higher pivots (price, strength and volume are all making higher high). Having said that, we need to keep in mind the expectations of double bottom pattern and settle for appropriate risk reward.
Long
by Trendoscope
9
EURGBP - Possible Short term Buyprice reaches an order block/demand area and forms a QM pattern (higher high and lower low). if price reaches the left shoulder level (fib retracement of 0.718 and 0.886 - best levels for premium or discount ), it could reverse and go bullish . Divergence also occurs at 30M and 1H tf that backs up the bullish behavior. The overall trend is now bearish after it hits a resistance trendline on a weekly tf. So if in case it goes up then it is just short-term. This is just my analysis. I could be wrong of course.
Long
by Chad_Sniper
BTC Uptrend: Bullish div BTC Weekly, and Pullback to EMA on 1DThis setup is about a pullback to the Value zone on the daily, and the larger setup on the weekly: A bullish divergence. 1W: Bullish divergence on the weekly, but only on the MACD-H, so I rate it weak. It might look strong, but these are the facts: only a bullish div on MACD-H, not on any other indicator. Stochastic RSI is curling up from an oversold condition. I give this idea the benefit of the doubt and have a conservative target slightly below the Slow 22-EMA, where I will take off 66%. I'll let the remainder run with a traling stop. 1D: There is a ride the trend setup, in which the price is pulling back to the Value zone. I enter with only 50% now, because it's not clear if the pullback is forming a low, or if it will go lower. For the other 50% I'll wait for the daily close and look for the situation on the 4H at the end of the day. R/R: 1:1.6 e: 22500 s: 18750 tp: 29000
Long
by Tornado_Trading
DONT FOMO INTO LONGS JUST YETWe are all looking at the same chart and thinking the same thing. SPY COULD have a serious bounce on the 200ma with a POSSIBLE bullish divergence on MACD and RSI. Many have already begun to FOMO into a possible year end rally as we have been rallying hard the past few days. This year is also a midterm election year (midterm election years usually have a rally beginning election time into the middle of the following year). However, this years year end rally is still not confirmed and going bullish so early would be disrespectful to the insane bear market we are having. Expect a retest of the 200ma in the coming weeks with the price coming back down to ATLEAST between 265 to 260, if not lower. If it holds, there is a definite possibility we could be testing 400 at the end of the year to beginning of 2023. However, for this upcoming month I am expecting us to be range bound. There are so many big earnings with banks reporting in the third week and big tech reporting in the last week of the month. Expect for us to have a better direction beginning of November. Also, do not be surprised if we do not bounce at the 200ma. This bear market is no joke. If earnings are bad and we break down, be ready for a possible 320. Also note Credit Sussie CEO will deliver their turnaround strategy on OCT 27, aligning perfectly with with the end of big tech and bank earnings. How the market reacts to their strategy will also weigh into the direction the market will take to close the year. Till the breakout in either direction is confirmed, be smart and play the range that will form.
AMEX:SPY
by MoRafi
Bull Bear Volume Oscillator (Idea in the making)I want you guys and gals to add in your question and comments below. There are certain things id like to new oscillator to do for you but i want to know in what ways it can be better like if it seems to be missing something. However. That being said, if you think its good the way it is, then by all means, let it be done and ill release it ASAP. This is the Bull Bear Power Volume Oscillator. It shows you TREND DIRECTIONS. A bullish trend is not defined until you have higher highs and higher lows of the same green color . A bearish trend is not defined until you have lower lows and lower highs of the same red color . There is also a CENTER area which is clouded called "The Void". Any action closing in this area is null and taken as A) Market is ranging. and or B) There is not enough opposing volume to move the market either way. it is not until you get a high or low OUTSIDE of this area, where you should consider a trade. Also, any action taking place outside of the VOID is considered a higher volatity in the market. Anything INSIDE the void is an extremely LOW volati SOURCE - You can choose the source to be anything else that exists on your chart, for example, the RSI from a different indicator or a particular moving average you have plotted on your chart. For those who have trouble seeing a divergence between momentum (RSI) or (Stochastic RSI) and your price action on your chart, this should paint a more clearer picture for you. A long red column is obviously a LOW and a long green column is obviously a High but what you should be looking for is the end of the WICK and not the color of the candle. Again this is an early set of information for this indicator. Id like to get your feedback on it.
by CoffeeshopCrypto
2
NVDA - near longer term supportNVDA has a bullish divergence on it's weekly chart and it finally came true today with a gap up today. It tested a longer term support zone (115-120) last week and this support is holding so far. Having already retraced almost 78% of its post covid swing (AB), I am willing to take a position in NVDA right now with an initial stop loss just below this support zone @ 115. Whether this rally is yet another bear rally remains to be seen. Will protect with trailing stops along the way. 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:NVDALong
by Juliac
1
DXY is testing a major resistance area After a massive rally of dollar, people were selling everything to buy dollars. now dollar is testing a 10-year resistance. which means we could definitely see the massive corrections in other markets. including bitcoin or stocks. I believe bitcoin is not going below 18k for time being. bitcoin is probably heading toward 30k - 32k area. within few weeks. (Only if DXY unable to break huge resistance area) also, bitcoin was very oversold which means the market will eventually have massive correction. We can also see the huge monthly RSI divergence. which means the momentum is shifting. Last 11 months rally was huge and the whole world economy collapsed due to dollar bull run. i think now it's time for dollar to get a good correction. if we take look SRI LANKA economy vanished into thin air. also, country like Pakistan were struggling to keep up with the inflation. DXY has huge impact on $BTC however Bitcoin was still performing better than worlds most powerful currencies. NOW we need to take a look at CPI report in order to take further action. 13 OCT is the big day.. that's when we are going to take action. Have a good day :)
TVC:DXYShort
by Bitsleader
RSR - 4H Bearish DivergenceRSR has shown incredible positive price action in the last days, skyrocketing from ~$0.005 to $0.01 in a matter of a week. I was expecting a tiny correction from $0.008 area but instead price jumped ~20% up. Higher highs on RSR price did not follow with the same pattern on RSI and MACD, making me believe that a small price correction vis-a-vis negative outlook on public markets, cyrptocurrencies in general and overall geopolitics. Opened a short in area $0.0096, targeting $0.0092 and below. Trade cautiously as the token is experiencing positive traction and lot of speculation.
Short
by crypto_angelz