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Divergence

DAX40 Double Bottom Formation In The 4 Hour ChartI am looking at a possible double bottom formation on the DAX40 on the 4-hour chart. We have seen nothing but bearish price action since we hit the daily resistance level around the 1395 price point on the 17th of August. Since then we have been making lower lows and lower highs, forming a descending trend line. We have tested this descending trend line twice. What is interesting about the second time we touched the trend line is that the second tap coincided nicely with retesting previous support flipped resistance. I have highlighted the neckline in yellow and have extended this zone to the left and right and we can see that the top of the current double bottom neckline is testing resistance that was once support if we look to the left. So we have some nice confluences here lining up already. Looking at the two bottom peaks, we can see they are around the same price level but looking below at the MACD, we clearly can see full divergence. The Histogram is weakening and the MA lines are trending upwards as well. This means that the bears (sellers) are weakening and at some point, the bulls (buyers) should be stepping in and taking control. When trading double tops and double bottoms, we always look for full divergence because this adds confidence and confluence to the setup. Now, to confirm this double-bottom formation, we need the rest of the formation to play out. We need the price to move impulsively upwards pushing past the descending trend line, then push and close above the neckline. We also need to see strong bullish volume accompany that bullish move. If we see that, and only If we see that, I will then be looking at reasons to go long. I will be waiting for a retrace back into the neckline and enter somewhere inside of the neckline retest. My targets will be previous daily resistance. Currently, we are still ways away from something like this happening. However, I wanted to bring this to your attention because it is good to be able to see patterns begin to form early. This helps us keep an eye on it and set alerts if need be. This also trains our eyes and gives us the ability to spot these patterns in the smaller time frames where the action occurs much quicker and decisions need to be made must faster. Let's watch what happens. If the double bottom formation doesn’t form and the price continues to drop, we may look for further short opportunities and other pattern formations. We can only trade what the charts give us. Hope you all have a fantastic first of September. See you on the next one. The Vortex Trader
OANDA:DE30EURLong
by TheVortexTrader
2
BTC falling wedge4h chart Got falling wedge formed (bullish figure, more chance for move up from it) Multiple bull divergence RSI, SRSI, MACD histogram (if the price does not continue down hard pulling oscillators with it. Possible double bottom formed... Interesting point is that end of this wedge is more or less at the technical target of the big blue rising wedge... To resume, could go down some more, but in mid-term we have a nice chance for some kind of reversal in the days to come. Falling down from this figure, if it happens, could be very hard...
by PhilosophersStone
short and long position for xauusdhello guys As you can see in the chart, after forming several drives and divergence, the price has broken the drive line and started a downward movement. After Sharp's move (or movement with high momentum) , this scenario is repeating itself, but this time it has formed two drives. There are two areas with high potential to take a long position. The first area or the first scenario: It is possible that the first liquidity range will be formed after the break and engulfment, so you can wait for the long confirmation in this area. The second range or the second scenario: This range can be formed on the QML AND DP The TARGET of both POSITION is the end of the first drive that I have shown in the CHART! always do your own research. If you have any questions, you can write it in comments below, and I will answer them. And please don't forget to support this idea with your like and comment. BE PROFITABLE
OANDA:XAUUSD
by melikatrader94
12
SPX and NQ - short term bounce nextBoth indices appear to be finding support at their respective near term support zones and with bullish divergence seen (between price and stochastics), a bounce is likely to happen soon. Whether the worst is over or whether this next rebound is going to be a short-lived bear rally remains to be seen. Not time to turn longer term bearish yet despite the extremely volatility this period (not to mention all the calls out there screaming for market to crash). Just my opinion! If we start to have a lower high (and especially followed by a lower low), then I would certainly stay very cautious. 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!
TVC:NDQ
by Juliac
SOLANA! wait for a good confirmation Hello Ladies and Gentelman ,According to my analysis I recommend to wait for a good confirmation ,to buy SOL ,as we know the market is still struggling ,Also BTC ,which affect the market ,so when the BTC will make good moves upwards ,we will absolutely Buy SOL! for low risk ,because this is how the market is working. In this period we will watch SOL moves to grab the best opportunity.. if you have any opinion about my Idea ,please tell us .
FTX:SOLUSD
by YassirEL
2
SBUX - uptrend still intact (for now)Uptrend still intact unless we breach the near term support @ 84. Bullish divergence is a harbinger that a near term bounce is in the works (note that any bounce from a bullish divergence is short term and may not translate into longer term trend). Watch out for resistance at 90 as it may experience another consolidation around there. A close above 90 will be a strong signal for the bulls. 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:SBUXLong
by Juliac
2
EUR/USD Double Bottom OR Short Order Block EntryLooking at trading EUR/USD today. We have a potential double bottom formation on the 4-hour chart. Remember, we are currently at major major support levels. The fact that the euro is less than one to one with the dollar is incredibly unsettling. So, we know that we have a major fight currently happening between the bears and the bulls. I have highlighted the neckline in yellow and I would like to see strong volume show up to accompany a close above this zone. We can also see that we are currently sitting against a descending trend line and it is very possible that we could bounce off of this region, get rejected, and carry on lower. There is also an order block that we have currently pierced that could give us a target of 1 / 8 Risk to reward if we were shorting. So there's one awesome opportunity. However, if we were looking for a long setup, we have the full divergence across the MACD histogram as well as the MA lines which dd confluence to the setup. We just need that volume to show up. Once we see a close above the neckline zone, I would be waiting for a retrace back into the neckline zone, which would coincide nicely with flipping the trend line to support resistance. This would trigger a long entry with two targets up above. Target number one would be the 1.01 price level. Target number two would be the 1.02 price level. Remember, going long right now is trading counter-trend. We must be certain and need all the stars to align in our bag of rules and criteria. I also would not risk my usual amount on a counter-trend position. Let's keep an eye out and watch what happens. Hope you all have a great day
Long
by TheVortexTrader