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Divergences

GravitaThis stock has given good breakout from decending parallel channel with good intensity of volume, also positive divergences in RSI and Macd signaled on daily time frame before breakout. RK's mass psychological Cloud buy activated and RK's buy signal activated, Rsi breakout also making scenario more powerful, adx showing good strength along with positive Dmi, Overall looking good to go long, with respected levels. Breakout along with good intensity of volume Positive divergence in macd Positive divergence in RSI RK's mass psychological Cloud buy activated along with breakout also along with buy signal Macd in daily positive crossover and Uptick and also above zero line Macd in weekly uptick now Breakout in RSI of daily time frame Price challenging upper bollinger band Dmi adx also positive on daily time frame Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you. Disclaimer I am not sebi registered analyst My studies are Educational purpose only Consult with your Financial advisor before trading or investing
NSE:GRAVITALong
by RK_Chaarts
[S&P500, NASDAQ, and BTC] Can't you all three be bullish please?Hello everyone. Today we’ve prepared a comparative technical analysis for S&P500, NASDAQ, and Bitcoin in macroscopic perspective by observing daily and weekly charts. Line charts for future commodities from CME were used which are ES1, NQ1!, and BTC1!. Also, in order to observe possible trend reversal signal, RSI indicator with default length of 14 was referred with. Let’s start with daily charts. S&P500 made a significant high at January 3rd while NASDAQ and Bitcoin made highs about two months earlier: at November 19th and 9th respectively. Let’s have a look at the markets after forming historical highs. S&P500 bounced up to 0.618~0.786 retracement level of the corrective wave structure and then dropped reaching 1.414~1.618 projection levels. Similarly, NASDAQ retraced up to 0.618 level of the correction and then dropped reaching 1.13~1.272 projection levels. In contrast, Bitcoin was much more bearish only retracing about 0.382 level and then continue to drop quite steeply reaching 0.786~0.886 projection levels. RSI indicators are also showing some different aspects for Bitcoin, compared to other indices. Both the prices of S&P500 and NASDAQ showed LL(Lower Low) while RSI of these showed HL(Higher Low) during 1/27~6/16 and thus indicating bullish divergence signals On the other hand, both the price and RSI showed LL for Bitcoin which means divergence is no longer valid. US indices generally showed decent amount of bullish rallies in between corrective waves time to time and bullish divergences appeared as well so some technical dead cat bounce or PRZ(Potential reversal zone) can be expected. However, wave structure for Bitcoin seems to be a bit more bearish due to smaller upward retracements, steeper falling waves, and absence of bullish divergence signal. Let’s then look at weakly charts which can be interpreted as more macroscopic views. I have selected the lows formed right after COVID19 shock for all these three. As can be observed, Bitcoin went through deeper retracement for about three months (4/12~7/12) throughout the bullish rally towards the historical high. After, even though Bitcoin made a swing high, this dip in the middle affected RSI to be cooled down a little bit pulling RSI down. Comparing retracement levels of each impulsive waves starting from the COVID19 for these three, 0.382~0.5, 0.5~0.618, and 0.707~0.786 Fibonacci retracement levels have been reached for S&P500, NASDAQ, and Bitcoin respectively. Bitcoin clearly has shown deeper retracement than the US Indices. Moreover, short-term bullish divergences can be observed on US Indices and mid-term bullish divergences on both NASDAQ and Bitcoin. Weekly charts indicates some signals of possible short-term dead cat bounces for US Indices and some of possible mid-term bounces for NASDAQ and Bitcoin. Personally, I think S&P500 might be a little bearish in mid-term perspective than other two.
CME:BTC1!
by Tommy_Trader
Divergences + Oscillator Confirmation: A Simple System.This will be a tutorial using divergences and oscillator confirmation buy/sell signals. Hello. Here I present a simple system that is very profitable but along side this system I will present a risk management system that is easy on emotions and robust on capital. I predominantly use the 1hr and the 4hr to look for both REGULAR divergences and HIDDEN divergences. The reason I use the 1hr and 4hr is because I find them easiest to trade. We can spot great and powerful divergences in the weekly or daily time frame but how do you enter into positions on such large time frames? We can't unless we use huge stops and tiny sizes. Therefore we can look for better opportunities in the 1hr and 4hr timeframes where those divergences are reliable and risk is easier to manage. I do not recommend moving any lower than the 1hr time frame because oscillators just generate noise and bad trades. REGULAR DIVERGENCE is perhaps easier to identify but more difficult to trade because they most often happen at trend changes when volatility tends to rise. I associate less risk with REGULAR DIVERGENCE specifically smaller positions and wider stops because tops or bottoms are difficult to time. If you are an inexperienced trader it is best for you to start looking at hidden divergences which trade with the trend. HIDDEN DIVERGENCE is easiest to trade but possibly more difficult to identify. HIDDEN DIVERGENCE tends to be a continuation of the trend confirmation. This for me tends to be easier to trade because you are buying a dip in the trend which tends to be less volatile (of course this is not always the case and you can see for yourself if you start trading divergences) REGULAR BULLISH DIVERGENCE: Regular bullish divergence is when the price action makes a lower low while an oscillator like The RSI or the Stochastic makes a higher low. REGULAR BEARISH DIVERGENCE Regular bearish divergence is when the price action makes a higher high but the oscillator makes a lower high HIDDEN BULLISH DIVERGENCE Hidden bullish divergence is when price action makes a higher low and the oscillator makes a lower low. HIDDEN BEARISH DIVERGENCE Hidden bearish divergence is when price action makes a lower high while the oscillator makes a Higher high. The method I use is simple. STEP ONE: IDENTIFY THE TREND: I use the 200EMA in the 1hr or 4hr time frame and take trades corresponding with the trend. The 200EMA simply acts as a method to gauge if the price action is bullish or bearish. If the price action is above the 4hr EMA then I look for a bullish set up. If the price action is below the 4hr 200EMA then I look for a bearish set up. ( I must admit I do not always follow my advice here as today I went short and long but with experience comes flexibility). If you are an unprofitable trader I highly recommend sticking to this part of the system to prevent overtrading and take the most probable trades possible. STEP TWO: IDENTIFY REGULAR OR HIDDEN DIVERGENCE. This step will get easier with practice. As you see in this chart, We see both REGULAR DIVERGENCE which IMO is easier to spot and we have also HIDDEN DIVERGENCE which is more difficult to spot as it is across days. So now that we have identified divergences in the Stochastic RSI we are looking for a confirmation of the divergences we just found. The Stochastic RSI is simple to use when used with divergences. With out divergences the Stochastic RSI gives too many signals and sometimes wrong signals therefore we should only use the Stochastic RSI (or your oscillator of choice) when combined with divergences. If it is a perfect set up such as the morning trade where I found regular negative divergence I waited for the 1hr Stochastic RSI oscillator to confirm a sell signal by crossing the 70% line DOWNWARDS. I set the correct stop of 1% (more on risk management later) and waited for the oscillator to turn down to oversold where amazingly enough it fell and created HIDDEN BULLISH DIVERGENCE when we plotted a line from previous days' Stochastic history. Once the Stochastic turned upward on the 20% line this was my signal to exit the trade...AND because the Stochastic had now created HIDDEN BULLISH DIVERGENCE I took the long side which was an even better trade. Days like today do not happen often if ever but if you read my previous posts I had been anticipating such scenarios based on other factors I will not go into here. Read them posts if you want to know how I suspected this kind of price action was going to happen. STEP THREE: Is not a step, like I mentioned this is an incredibly simple system but no system is complete without robust RISK MANAGEMENT. The risk management comes from the great traders at Guerrilla Trading. I am not affiliated in any way but I was with them for two months and I highly highly recommend them. You will learn price action like no one else. Here I borrow on their money management ideas (I will not share all their ideas that would be unfair to them). It is simple. We will use only 1% risk by setting our stops accordingly. In the trade short in the morning on the micro Nasdaq I took a stop of 80 points. But I calculated my size according to my total capital meaning that if the Nasdaq moved against me 80 points I would only lose 1% of total capital. That's great! If the trade goes against me I would have only lost 1%. But as I have flexible stops, I also have no fixed targets and I let the oscillator let me know when to get out. In the case of the morning trade I took around 206 points. I did not know where the exit would be I just knew the oscillator would tell me. But as you can see by risking a psychologically manageable amount of risk I was comfortable in leaving the trade on until the oscillator told me when to exit. Similarly on the lunch trade where I found HIDDEN BULLISH DIVERGENCE and the Stochastic RSI confirmation crossing the 20% line I took the trade and I am still in the trade because neither the 1hr Stochastic RSI oscillator nor the 4hr oscillator have signalled a sell signal yet. And this is my own personal strengthening of the system. I try to take the 1hr trade over to the 4hr trade where I find I can remove as much of the noise from the lower timeframes as possible and capture almost an entire move. Shwing Trading baby! Well that is it. A simple system using divergences and oscillators to create great trading opportunities. This coupled with a 1% risk management and we have a powerful system that protects capital and maximizes rewards. Included here are several different examples of divergences I have posted on different time frames to get you started on your journey of using divergences.
CME_MINI:MNQ1!Education
by Sinex
1
Long various alt coins soonHello everyone, I am seeing a potential buy signal on Ethereum and similar alt coins coming up soon (within the next couple of days if not now). I am a purely technical analyst. I believe all the possible news and rumors that all the traders in the world have heard and acted on are already priced in the market. So to me reading what the market is telling me is like reading ALL the news, without reading any! Though I do enjoy reading crypto news at times. Just remember the trading axiom to buy the rumor and sell the news. This was certainly the case for ADA and DOT last year! Anyway I have offered an explanation of my system. I will not give you an analysis that suggests it can go two ways. Those kinds of analyses are pointless in my opinion. How does that help? I am telling you the market is showing at least a short term bottom, and so it is time for me to jump in. In my previous analysis, I suggested a hard down move for bitcoin, possibly to 20k. But now that I am seeing this signal, I have changed my mind. The signals appear when they appear, and I heed them, regardless of what I speculated on prior. That is it for now. If you have any questions, please feel free to ask. Wishing you the best!
Long
by jbrelin
5
LTC/USD: Bullish Butterfly HarmonicLitecoin forming this bullish butterfly Harmonic Pattern in H4 timeframe. But also, in price action I look from this point a bullish reversal. My consider target it's toward $135 USD. So I bullish in Litecoin and this it's an interesting trade to put long in Litecoin. Also for reference, I look the same in Bitcoin, Ethereum and Cardano. They'll forming a bullish pattern as indication that market will go to long. But for me, Litecoin it's enough and very interesting trade what I found out.
COINBASE:LTCUSDLong
by harisonhbn9718
3
BTC: Will the bullish divergence lead to higher prices?Weekly Chart: The bearish divergence with false breakouts around Nov 21st 2021 is still at play. Went down through support at 46k ish and testing 40k now. Stuff on weekly chart takes a while to fizzle out, especially a bearish divergence. But bottoms take less time to build than tops, so maybe this is it. It needs to be able to close above -1 ATR channel line soon, otherwise lower prices more likely. Daily Chart: Bullish divergences formed, by taking out 42333, and MACD and other indicators are less bearish . Not a high quality divergence, but still a bullish divergence , often the start of a trend change. If lower prices are in the near future, this bullish divergence should dissolve and not confirm a false breakdown of 42333. It is already limping, so it won't take much weakness for the likelihood of 42333 not being a false breakdown. Next support is 35k, in case 40k cannot hold. Trade safe!
COINBASE:BTCUSD
by TurboNik
BTC: Will the bullish divergence lead to higher prices?BTC Weekly Chart: The bearish divergence with false breakouts around Nov 21st 2021 is still at play. Went down through support at 46k ish and testing 40k now. Stuff on weekly chart takes a while to fizzle out, especially a bearish divergence. But bottoms take less time to build than tops, so maybe this is it... Daily Chart: Bullish divergences formed, by taking out 42333, and MACD and other indicators are less bearish. Not a high quality divergence, but still a bullish divergence, often the start of a trend change. If lower prices are in the near future, this bullish divergence should dissolve and not confirm a false breakdown of 42333. It is already limping, so it won't take much bearishness for the likelihood of 42333 not being a support. Next support is 35k, in case 40k cannot hold. Trade safe!
COINBASE:BTCUSD
by TurboNik
Bullish, but waiting for entryDOT appears to have formed a symmetrical triangle with BTC. The most recent 4-hour bullish divergence would've been the ideal place to enter a long, but now that we are retesting daily moving average resistance, I'm on the sidelines until I see another obvious entry. For long-term investors, we are still at an accumulation level so if you're looking for DOT exposure, this could be a good place to start averaging in. ----------------------------------------- I'd love to hear your thoughts, ideas and feedback. Feel free to comment and I'll try and get back to you quickly. If you appreciated this analysis, consider Liking or Following. Thanks!
Long
by mercury_rising
2
The easiest way to use divergences in your own Pine strategiesDetecting divergences in a Pine indicator / strategy is easy. You simply have to compare the pivot lows and the pivot highs on the price and the oscillator, and if you can identify a difference between the last & previous pivots made on the price and the oscillator, you have likely found a divergence. Using this theory, here is an example how you would detect a Regular Bearish divergence: While the theory of divergence detection is simple, more often than not, things go wrong (the divergence indicator used in the example below is TradingView's built-in Divergence Indicator ): Would you identify this as a divergence? If not, why not? Is it because the divergence line is slicing through the candles? Or because the line is slicing through the oscillator? Or something else? Wouldn't it be great if somehow you could filter out invalid divergences from code, such as this one? We at Whitebox Software were wondering about the same thing, and decided to find a solution to this problem. This is when we realised that while detecting divergences is easy, detecting valid divergences is hard... After several months in development, we are proud to present to you our divergence indicator called The Divergent . The Divergent is an advanced divergence indicator with over 2500 lines of Pine Script, exposing over 30 different configuration options, including 9 built-in oscillators, to allow you to tweak every aspect of divergence detection to perfection. For example, the Line of Sight™ filter in The Divergent would have easily filtered out this invalid divergence above. The Line of Sight™ filter will notice any interruption to the divergence line connecting the price or the oscillator, and will treat the divergence as invalid. This filter is one of many, which has been created to reduce the false positive detections to a minimum. (In later publications, we will discuss each and every filter in detail). Alright, so The Divergent knows how to detect accurate divergences, but how is it going to help you detect divergences in your own Pine strategy? The Divergent is not simply a divergence indicator - it can also emit divergence signals * which you can catch and process in your own strategy. You can think of The Divergent being a DaaS ( D ivergences a s a S ervice)! * Please note, that divergence signals is a Pro only feature. To use the signals, simply place The Divergent onto the same chart you have your strategy on, import "The Divergent Library" into your code, link your strategy to The Divergent using a "source" input, and act on the signals produced by The Divergent ! Here is a simple strategy which incorporates divergence signals produced by The Divergent in its entry condition. The strategy will only open a position, if the moving average cross is preceded by a regular bullish or bearish divergence (depending on the direction of the cross): //@version=5 strategy("My Strategy with divergences", overlay=true, margin_long=100, margin_short=100) import WhiteboxSoftware/TheDivergentLibrary/1 as tdl float divSignal = input.source(title = "The Divergent Link", defval = close) var bool tdlContext = tdl.init(divSignal, displayLinkStatus = true, debug = false) // `divergence` can be one of the following values: // na → No divergence was detected // 1 → Regular Bull // 2 → Regular Bull early // 3 → Hidden Bull // 4 → Hidden Bull early // 5 → Regular Bear // 6 → Regular Bear early // 7 → Hidden Bear // 8 → Hidden Bear early // // priceStart is the bar_index of the starting point of the divergence line drawn on price // priceEnd is the bar_index of the ending point of the divergence line drawn on price // // oscStart is the bar_index of the starting point of the divergence line drawn on oscillator // oscEnd is the bar_index of the ending point of the divergence line drawn on oscillator = tdl.processSignal(divSignal) bool regularBullSignalledRecently = ta.barssince(divergence == 1) < 10 bool regularBearSignalledRecently = ta.barssince(divergence == 5) < 10 float slowSma = ta_sma(close, 28) float fastSma = ta_sma(close, 14) longCondition = ta.crossover(fastSma, slowSma) and regularBullSignalledRecently if (barstate.isconfirmed and longCondition and strategy.position_size == 0)   strategy.entry("Enter Long", strategy.long)   strategy.exit("Exit Long", "Enter Long", limit = close * 1.04, stop = close * 0.98)   shortCondition = ta.crossunder(fastSma, slowSma) and regularBearSignalledRecently if (barstate.isconfirmed and shortCondition and strategy.position_size == 0)   strategy.entry("Enter Short", strategy.short)   strategy.exit("Exit Short", "Enter Short", limit = close * 0.96, stop = close * 1.02) plot(slowSma, color = color.white) plot(fastSma, color = color.orange) One important thing to note, is that TradingView limits the number of "source" inputs you can use in an indicator / strategy to 1, so the source input linking your strategy and The Divergent is the only source input you can have in your strategy. There is a work around this limitation though. Simply convert the other source inputs to have a string type, and use a dropdown to provide the various sources: string mySource = input.string("My source", defval = "close", options = ) float sourceValue = switch mySource   "close" => close   "open" => open   "high" => high   "low" => low   => na --- This is where we are going to wrap up this article. We hope you will find the signals produced by The Divergent a useful addition in your own strategies! For more info on the The Divergent (Free) and The Divergent (Pro) indicators please see the linked pages. If you have any questions, don't hesitate to reach out to us either via our website or via the comment section below. If you found value in this article please give it a thumbs up! Thank you!
Education
by WhiteboxSoftware
2