📊 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 ❤️
Divergencebearish
Hidden bearish divergence spotted on EURUSD, SELL OPPORTUNITYHello traders, welcome back to my divergence trading idea. Today, EURUSD form a Hidden Bearish Divergence on the H4 TF as price had made a Lower High (LH) while the RSI Indicator had made a Higher High indicating price can move further down as the price is in a downtrend. Also on the H4 TF, price rejected the recent high trendline around 1.11203 which could mean more sellers are coming in.
A trade entry can be made around 1.10285 with TP placed around 1.08461 and SL around 1.10863.
The RRR is 1:3.21 making it a good trade
Incoming potential Avalanche (CHFJPY)Since price has been failing to break and make new highs
I forsee an avalanche. The convincing factor is that
there seems to be a clean divergence in the RSI
on the daily time frame.
Looking for a break to downside.
Of course nothing is 100% in forex!
trade safe!!
Potential EURJPY short tradeBearish Elliot Wave (EW) currently in progress, with EW4 potentially forming a Bearish Divergence which may tag the 200 Moving Average before it's descent.
Potential supply zone ALSO at 124.679. According the EW analysis the potential EW4 forming could find supply (resistance) at the end of EW1.
Alerts set at 124.679
Let's watch and wait
Bear Trader.
Potential short trade AUDUSD 4HRPotentially Bearish Divergence @ the 200 Moving Average. Price had previous completed a 3 wave correction followed by an impulsive move up with a small pull back, in which the impulsive move could continue up and find resistance at the 200 Moving Average along with a potential supply zone @ 0.72354/0.72226.
Alerts set @ 0.72265
Still Bullish for the mean time
Watch and Wait
Bear Trader.
We hope a the price in Fibonacci zones importantHello guys, in this technical analysis, its one of the complicated for me. because we see a lot figures in the past. So, I found out that sterling is in buy off. Because there are a news of investing what I found it in the past hours.
"The U.K. prime minister Boris Johnson say is thay he expected from U.k. to relax social distancing guidelines on growing hopes for Britain's economic recovery"
So, this message of Boris it's was impact and has a good indicator from the U.K., and the contrary, today on Monday there are a bad news for the US Dollar.
Also, lets me see that in the operations it's supposed to closed up on Sunday, because there was have a bullish divergence in RSI in the operation of EUR/USD and AUD/USD, so now this par are bullish because there are a fears of US Dollar and has continue this fears in the country of much cases of covid-19. But, for my experience, is practice, because I have earning in profti, but, I closed up manually, but, remember, one of my best strategy is to read news, writing in the notebook all news and how it's may be a impact for the future. That is the best strategy for me, and also, I always work more to fix.
But, I do not bad in the operation, all practice it's become a master.
So, continuing in the technical analysis, we hope that the price is to leave at the 0.382% or 0.618% of Fibonacci to entry in a buy. And also, lets me say you is about this par is in the formation of Shoulder Head Shoulder inverted, and the RSI divergence is confirm that. Well, the target is in the $1.2574 USD, so its mean a movement of 160 pips.
And also, I add some images of the situation of this par:
In H4 timeframe we see a strong bullish
And also, we came from the bearish channel!!!
And the montlhly, we see that sterling is so devaluated their value throught of the years and that country it's can be to reach to complete the elliot wave # 5