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Divergence

Bitcoin - For Trading Not for InvestingWhen Bitcoin was trading at around 60,000 level in late 2021 and before that year, whenever friends, acquaintance and participants asked my opinion about investing into cryptocurrency, immediately I knew they may not know much about cryptocurrency. To clarify, I am not an expert in cryptocurrency, but I know its intrinsic value could not be calculated then and even today, therefore it is an instrument not for investing but for trading. Let me elaborate, as long as we cannot define its intrinsic value to any so-call an asset, it is not an asset, but an instrument for trading. When we get into trading, meaning, we have to acknowledge the getting in and out, out also represent to exit the market with either a profit or a loss, it is part of the deal in trading – we have to be quick when we make a wrong decision. However, if you position yourself as an investor in crypto, you will either always perceive it will break new high or hope that it will someday go back to its former glory. Throughout the whole tutorial, I will do a recap on how I have spotted this top here in November 2021. I have done this in another personal forum I have back then. I will go through that and it may seem like a hindsight view, but I will apply the same strategy to the current market using just trendline and divergence. Bitcoin Futures Minimum Tick: $5.00 = US$25 or $1.00 = US$5 Contract Value: 20,000 x US$5 = US$100,000 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:BTC1!Education
by konhow
2
Class A Triple Bearish Divergence on BTC DailyWe see clear class A triple bearish divergence has formed on the BTC daily chart. This is an indication of a likely bearish reversal of the short term uptrend BTC has been experiencing. Recently, BTC has been holding the heartland of the bear flag channel that it has been in since June 16th. The recent upward price movement did not reach the top of the channel and now is heading down. The price action has been tightening for BTC, lately, so a full test to the bottom of the channel might be unlikely. It is difficult to predict where this move could wind up, the most bullish case would be dipping below the hear line, not reaching the bottom of the channel and moving back up. In that scenario the oscillators could get reset and this divergence was invalidated. The most bearish scenario would be to test the bottom of the channel and then break down, returning back to the long term downtrend BTC has been in for November 2021. Also, the long term bullish shark pattern which has around $10k as the shallowest PCZ is still in play. For me personally, I am not taking longs on BTC right now.
BITSTAMP:BTCUSD
by wuliwong
DXY showing long term bearish RSI divergenceThe US Dollar Index hit a low of 89 on 6th January 2021. Since then it has generated a bullish double bottom pattern reaching the 89.5 level again on 25th May 2021. The DXY then initiated a long-term uptrend, taking it to level 109 on July 14, 2022. The upward move lasted 553 days and led to a 22.5% increase. Additionally, it appears to have run along a parabolic uptrend line, which has been validated multiple times. Initially, it looked like the parabola was broken in May 2022, when the US Dollar Index hit a critical resistance level in the 103-104 range. However, after a small correction, the DXY rose, reaching another resistance area in the 108-109 range. The peak was reached with the formation of an inverted hammer candle (red arrow), which often signals a downtrend reversal. The following weeks saw declines and currently, the US Dollar Index sits at 105. The breakout of the exponential uptrend line occurred in early August. If the declines cannot be stopped and a higher-order parabola does not form, it is possible that the DXY has already reached a long-term peak.
INDEX:DXYShort
by HodlTradeCrypto
Intra-Day Trading TheoryTrading opinions can be made in a very concrete or a structured manner just like how investors study into the financial numbers of the stock they are about to invest into. Short-term traders also have its numbers they study into, it is the price behaviours or the price data of the instrument they are trading. When these data are converted into a pictorial format, it becomes a chart. And I am going to share with you a simple illustration on intra-day trading using trendline and divergence, to derive entries. You will find how this can be done in a very structured manner and you don’t have to guess too much into it. I have included some links below on my previous videos on trendlines and divergence. The first rule: The first about intra-day trading theory is we have to acknowledge the word “intra-day”, meaning all trades are done within the day itself, and we will have to square off all our positions before the market closes. This is Because we do not wish to carry any risks overnight with unexpected gaps. Micro E-Mini Nasdaq 0.25 = US$0.50 1.00 = US$2 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_MINI:MNQ1!Education
by konhow
4
Dolphins flee GFC2.0Chart panes: SPY, 240m price indicator: momentum midline oscillator Price exhibits, perhaps historic, divergence from the momentum oscillator below. This is just one of many signs concerning experts about the possibility of a global financial crisis. Managing risk in this environment feels ironic at times. It reminds me a Douglas Adams humor book from the iconic series "Hitchhikers guide to the galaxy". In the last book from the series, the earth's dolphins foresee the planets destruction and flee by spaceship. The dolphins, not wanting to be rude, left mankind a thank you note in the ocean, saying: "So long, and thanks for all the fish!" For now, I remain in the ocean and will suffice by downsizing positions.
AMEX:SPY
by gb50k
2
Falling Wedge- Bullish- Keeping a close eye on CRM here as its finally starting to break out of this falling wedge it's been holding for quite some time now. Big increase in buyer volume relative to seller volume as shown on the RSI with some slight bullish divergence on the daily timeframe, and some more bullish divergence on the weekly timeframe (See Attached Chart Below). - CRM closed out the week reclaiming its 20-Day SMA while also testing the upper trend line on the falling wedge it's been holding. On top of all that, CRM's EMAs are starting to curl upwards, with multiple gaps to fill on the upside heading into earnings, all signs pointing towards a breakout. - Bullish and will be looking for a breakout from this wedge (Broader Market Conditions Permitting)- Just some support and resistance levels to watch along with some RSI-based supply and demand zones to keep an eye on in the meantime --Weekly chart & Price Targets Attached Below-- PT1- $192.54 PT2- $196.23 PT3- $202.72 PT4- $205.18 + --Weekly Timeframe--
NYSE:CRMLong
by jacobosiason7
Lets Talks Divergence! Short BTC/USD !!Lets Talks Divergence! Short BTC/USD !! Note: This Post is for Educational Purpose only. Trade after doing your own analysis. Oscillators are the great tools to look for divergence. Divergence shows the Fall or Rise in Momentum of The Strength. In other words, the Divergence occurs when Oscillators show the opposite picture than the Price Action. Divergence can indicate the change in Trend Before it Happens therefore it is an essential part of my Trading. In the case of Bitcoin, the trend is Bullish and the Price Action shows Rising Trend but the Oscillators below (RSI and Chaikin) seems to be Falling. Trade Plan: Indicators are highlighting Bearish Divergence but the Divergence alone is not enough to take the Short Call. Adding another Strong Confluence I can find is the Resistance, Bitcoin is not able to Break the 24,000 - 24,500 Zone (Highlighted in Red), which shows that the Bears take over at this zone. Strong Resistance with Bearish Divergence on Daily Time-frame are the Strong Confluences which can result in Good Profitable Trade of 1:5 Risk to Reward. Stop loss: It is placed where the Price is Least Likely to go. Target: It is set in accordance with Fib Retracement and the last point where BTCUSD started Bullish Trend. Time Frame: Daily Indicators used: RSI & Chaikin Analysis based on: - Market Structure - Price Action - Divergences - Support & Resistance Disclaimer; Trading is never 100%. This post is for education only. DO NOT Trade without doing your Own Analysis.
COINBASE:BTCUSDShort
by M_Shariq
2