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Divergence

Divergence - asset price directionDivergence is the discrepancy between the direction of an asset's price and the readings of an indicator. There are three types of divergences: classical, extended, and hidden. The first two can be used to gauge market sentiment and to trade in the opposite direction. Hidden divergence, however, is more significant and can serve as a powerful supplementary factor in determining the price direction and opening positions. The use of extended divergence is not necessary, as it rarely occurs and forms at equal highs or lows. In such cases, an indicator is not needed to gauge market sentiment; the chart itself will suffice. Classical Divergence Classical divergence indicates a potential trend reversal or the beginning of a correction. Bullish classical divergence is identified when a lower low (LL) forms on the chart while a higher low (HL) appears on the indicator. The masses buy when classical bullish divergence appears, anticipating significant growth. An upward price movement may begin, but after short-term liquidity for buying is exhausted and the price rebalances, a reversal will occur, and the decline will continue. Long positions opened during the correction will become unprofitable. In a bear market, classical bullish divergence typically appears before the start of a correction. Bearish classical divergence is identified when a higher high (HH) forms on the chart while a lower high (LH) appears on the indicator. The masses sell when classical bearish divergence appears, expecting a significant decline. A downward price movement may begin, but after short-term liquidity for selling is exhausted and the price rebalances, a reversal will occur, and the growth will continue. Short positions opened during the correction will become unprofitable. In a bull market, classical bearish divergence typically appears before the start of a correction. The formation of multiple divergences is common. The masses will seize every opportunity to open their positions, leading to unprofitable outcomes. The number of divergences before the start of a correction is not limited. It is recommended to wait for the price to react after reaching the resistance zone. In the example above, the correction began after partially filling the imbalance on the 1D timeframe within the imbalance on the 1W timeframe. Hidden Divergence Hidden divergence serves as a confirmation of trend continuation. Bullish hidden divergence is identified when a higher low (HL) forms on the chart and a lower low (LL) appears on the indicator. In an uptrend, hidden bullish divergence may form before the continuation of growth, acting as a strong supplementary factor in determining the future price direction and considering positions. Bearish hidden divergence is identified when a lower high (LH) forms on the chart and a higher high (HH) appears on the indicator. In a downtrend, hidden bearish divergence may form before the continuation of the decline, acting as a strong supplementary factor in determining the future price direction and considering positions. Notes - The RSI (Relative Strength Index) indicator is used to identify divergences. - RSI is plotted without considering candle shadows. - Divergence should be viewed as an additional factor to your analysis, not a standalone tool. - Divergence below the chart will always be bullish, while divergence above the chart will always be bearish.
Education
by truepersonal
The last bullish chance of Ethereum in Mid term!Hi. BINANCE:ETHUSDT Today, I want to analyze ETH for you in a 1D time frame so that we can have a MID-term view of ETH regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). ➡️ETH has done a Impressive Movement recently but the odds of another bullish Movement is Pretty high because the pattern which ETH is in, Is a Bullish Flag Pattern! Since The break out has not happened, there is no confirmation of a Bullish Movement But If It happens, we Can Expect a Bullish Movement as much as the Measured Price movement (flag pole) to happen! ✅ Due to the Ascending structure of the chart... 🟢 ETH has been Bullish Recently! 🟢REEGULAR BULLISH Divergence 🟢ETH is in a Bullish Flag 🟢(AB=CD) 🟢Price is gonna Reach $4100 ✨Targets are: 🎯$3390 🎯$0.3500 🎯$0.62 🎯$0.3750 🎯$0.4100 Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
COINBASE:ETHUSDLong
by CobraVanguard
1
BTC Road Map🗺️!!! situation+next targets.Hi. COINEX:BTCUSDT ✅Today, I want to analyze BTC for you in a 9h time frame so that we can have a short-term view of BTC regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). ✨After the fifth bullish wave, BITCOIN has completed his corrective waves (ABC) and now he has reached the Bottom of the wedge, now it is time to start the five bullish waves, and BTC is in the Megaphone, also a bullish Divergence (RD+) on MACD which shows Positive Signs for BITCOIN. ✅ Due to the Ascending structure of the chart... 🟢 High potential areas are clear in the chart. 🟢 Bullish Wedge. 🟢 Ascending Triangle 🟢 Starting 5th waves. 🟢 Bullish Divergence ❗ Note that if the WEDGE is broken down with the power of descending candles, our analysis will fail. Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Long
by CobraVanguard
3
🚧Bitcoin is Bullish now🚧 & many Traders don't see it 👀!!!Hi. BITSTAMP:BTCUSD ✅Today, I want to analyze BTC for you in a 12H time frame so that we can have a MID-term view of BTC regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). After the fifth bullish wave, BTC has completed his corrective waves (ABC) and now he has reached the end of the wedge, now it is time to start the five bullish waves . ✅ Due to the Ascending structure of the chart... 🟢 High potential areas are clear in the chart. 🟢 Bullish Wedge. 🟢 Starting 5th waves. 🟢 Bullish Divergence 🟢Falling Wedge ❗ Note that if the WEDGE is broken down with the power of descending candles, our analysis will fail. Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
COINBASE:BTCUSDLong
by CobraVanguard
3
Two divergences at the same time in #BTCUSD chart#bitcoin has been proceeding in ascending channel. 2 divergences occured while #btc moves in LTF: 1- Hidden bullish RSI divergence (Green) 2- Regular bearish RSI divergence (Red) Hidden divergence has been playing out after the bounce from ichimoku cloud and continuation is expected till the price reaches 69K or may be even 71K. Also there're great liquidations in these levels. If CRYPTOCAP:BTC claims 69 - 71K and liquidate shorts, then it's likely to be expected that bearish divergence may take the play with minor correction wave or even a dump. If price breakouts above 74K, bearish divergence will be postponed or invalidated, but ascending channel pattern will be secretly on the play. NOT FINANCIAL ADVICE. DYOR.
by naphyse
AVAX/USDT is about to do a Bearish movement!!!Hi. COINEX:AVAXUSDT Today, I want to analyze AVAX for you in a 3D time frame so that we can have a mid-term view of AVAX regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). AVAX reached the resistance but could not break it. Also, we have a bearish divergence on MACD and RSI that the price will soon decline. ✅ Due to the Descending structure of the chart... - High potential areas are clear in the chart. - DIVERGENCE ON MACD - DIVERGENCE ON RSI Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Short
by CobraVanguard
10
PLTR Bullish Note A NYSE:PLTR s a software company PLTR seems to be doing great and the past earnings weren't the exception. Even when price is down because of a less than prior quarter growth rate in commercial revenue, fundamentals seems solid with the only issue being a very high P/E ratio. From a technical perspective, the price is resting on a strong support zone and held the current trend line that has been following from october 2023. If the price goes up above the 20 y 50 EMA I would expect it to reach 27.50 that would be the price target of the preceding falling wedge. Let's see. Target 27.50 Stop 20.40
PLong
by Alfonsoe21
I Cannot Short This !!! situation+next targets.Hi. KUCOIN:GTAIUSDT ➡️ the odds of another bullish Movement is Pretty high because the pattern which GTAI is in, Is a Bullish wedge Pattern! Since The break out has happened. ✅ Due to the Ascending structure of the chart... 🟢 The odds of another Bullish Movement is High! 🟢 Bullish wedge is Visible on The chart! 🟢 Bullish Divergence 🟢 FALLING WEDGE 🟢The break out has happened ✨Targets are: 🎯$2.7060 🎯$3.0200 🎯$3.5000 🎯$4.0165 🎯$4.5580 🎯$5.0490 Previous Analysis: Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Long
by CobraVanguard
6
Regular Bearish Divergence on the 4H UNI/USD (Uniswap)**UNI/USD 4H Chart Analysis** As we examine the 4-hour chart for Uniswap (UNI/USD), a noteworthy pattern emerges, signaling potential trading opportunities. The price trajectory is forming higher highs, a bullish signal under normal circumstances. However, a deeper look with the Commodity Channel Index (CCI) reveals a contrasting picture. The CCI is making lower highs, presenting a classic case of bearish divergence. This divergence suggests weakening momentum despite the rising prices and could foreshadow a possible reversal. Moreover, UNI's price movement above the weekly pivot point, which stands untouched at $7.432, draws attention. Typically, untouched pivots act as significant levels of either support or resistance. In this context, surpassing this pivot without retest might indicate it as a plausible target for initiating a short position, particularly if other indicators support a downward shift. Traders should monitor these developments closely, considering the bearish divergence and pivot dynamics, to refine entry and exit strategies in the coming sessions.
KRAKEN:UNIUSDShort
by TradingClue
4015_Possible Trend reversal (Bullish setup)4015 **Bullish Points:** Price at significant support level (Volume profile) confluence with 78% fib level Bullish divergence is observed Small entry can be taken now (Aggressive) Further entry can be taken after descending channel breakout, or at next support level 118.6 (DCA strategy) **Bearish Points:** Price is moving in downtrend, series of LH/LL H&S pattern breakdown and retest of neckline Current stop loss is specified Trail stop loss if price goes up Place SL below 118 (DCA strategy)
TADAWUL:4015Long
by YASIRWA