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Hidden Bullish RSI Divergence

Month on Month US Inflation Harmonically Set to Rise to 1.94%This is a followup to this year-on-year inflation chart idea posted back in June 2022: The YoY US Inflation rate has been on a trend of going down since it tested the 1.414 PCZ of the Bearish Butterfly above, but recently we have seen the MoM rate slow its descent and form a bottoming pattern with MACD Hidden Bullish Divergence at the 200-Month SMA and now we can see that the MACD has crossed positively as the inflation rate has broken out of its recent range. This harmonically puts it into position where we will likely see it at least hit the 0.886 retrace to complete a small bat pattern, but it could go out of control and go as high as the 1.618 Fibonacci Extension area all the way at about 1.94%. One reason I suspect for the sudden stop of the inflationary decline is due to the Fed not raising rates high enough, fast enough, and then keeping them the same for the last few months. It would also seem that the year-on-year inflation rate is setting up for a similar rise, showing Hidden Bullish Divergence at the Moving Averages and likely one that will result in it going to test higher highs to around its 1.414-1.618 PCZ once area once more before ultimately crashing back down from these highs once the Fed starts to go heavy on rate hikes again. Though the timeframe may be shorter than how it is presented on the chart, I do still suspect we will have action resembling what is projected on the chart below until the Fed starts rising rates aggressively again: This does not mean I think stocks will go up, that the dominance of the dollar will go down, or even that I think the consumer credit situation will improve. Instead, I think the rise in inflation will be fueled by energy, import, and export costs, and that this will be very bad for: Stocks, Consumers, REITs, and Banks overall, and that the Bond Yields will continue to rise at an accelerated rate.
ECONOMICS:USIRMMLong
by RizeSenpai
Hidden Diveregence : Bitcoin still got the strength to go North.Hey guys, How are you doing? I hope the market is treating you well and the hype is on the verge to explode like it always did in the previous pre-bull run scenarios. In today's insight I just want to remind you that a hidden bullish divergence is on the build up on the 4H time frame which can be considered as one more confluence and validation for the continuation trend. Divergences not only signal a potential trend reversal but can also be used as a possible sign for a trend continuation (price continues to move in its current direction). Always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then good for you! Hidden bullish divergence happens when the price is making a higher low (HL), but the oscillator is showing a lower low (LL). This can be seen when the pair is in an UPTREND. Once price makes a higher low (HL), look and see if the oscillator does the same. If it doesn’t and makes a lower low (LL), then we’ve got some hidden divergence in our hands by which we are seeing the scenario on Bitcoin's 4H timeframe chart. I will be updating more on the overall market trend and will give a weekly analysis on the end of the weekend. For now stay safe on your trades and keep learning. Wishing you a best weekend to have and stay blessed too.
Long
by cryptotalk_et
1
Bearish BAMM on the 3x Bearish Return IWM Bearish ETFThe 3x Bearish Return ETF for the IWM is currently showing Hidden Bearish Divergence on the weekly at the 55-week EMA, and it looks like if this Hidden Bearish Divergence plays out we will see the ETF fall below the B point and begin to accelerate its Bearish Wave Structure which would complete between the 1.272 and 1.618 Fibonacci extensions. This would mean that the IWM (The Russel 2000) itself would be rising. As a result of what I see here on the chart, I may consider buying puts on this ETF, Buying IWM Calls, or just overall getting more exposure to small caps and just taking this as an overall Macro Bullish Indicator.
AMEX:TZAShort
by RizeSenpai
📊 3 Types Of DivergenceRSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and exaggerated divergences. 📍Regular Divergence: Regular divergence occurs when the price and the RSI indicator move in opposite directions. There are two types of regular divergences: bullish and bearish. 📍Hidden Divergence: Hidden divergence refers to a situation where the price and the RSI move in the same direction, but the RSI signals a potential trend continuation rather than a reversal. 📍Exaggerated Divergence: Exaggerated divergence is a type of divergence where the RSI signal extends beyond the typical overbought or oversold levels. It suggests that the price is showing extreme momentum and could potentially experience a significant reversal. In summary, regular, hidden, and exaggerated divergences in RSI analysis provide traders with valuable insights into potential trend reversals and continuations. By understanding these divergences, traders can make more informed decisions regarding their trading strategies and positions in the market. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
$SONY: Monthly Hidden Bullish Divergence and Channel Breakout NYSE:SONY on the Monthly Timeframe is breaking out of a Descending Channel while confirming Hidden Bullish Divergence and Bullishly Crossing over on the MACD and the RSI enters the Bullish Control Zone; the next obvious target would be between 150 and 177 Dollars as that would be the completion of an AB=CD Harmonic Pattern. One last thing to note on the side is that the NASDAQ:MSFT acquisition of NASDAQ:ATVI has recently hit a brick wall with regulators and this is likely to spur some optimism in the NYSE:SONY camp who has opposed this acquisition in fears that Microsoft would eventually make games like Call of Duty, Xbox Exclusive.
NYSE:SONYLong
by RizeSenpai
LKQ - Hidden Divergence - BullishOn the chart of LKQ, we can see a forming ascending triangle and we can see hidden bullish divergence on daily timeframe. An ascending triangle is a bullish formation. The pattern gets validated when the price breaks out of the upside of the pattern. By using the Relative Strength Index we can hidden bullish divergence. A long position can be taken when the resistance of the triangle turns into a support. See all further details on the chart. Goodluck!
NASDAQ:LKQLong
by vf_investment
6
DOGEUSD: Piercing Line Hidden Bullish Divergence on the DailyDogecoin has one more chance to pivot from these levels, if it doesn't then it will likely come back down to test 7.2 cents but for now we have hope of a pivot to complete the potential Bullish BAMM to 14.8 Cents as we are holding above all the Moving Averages and just half an hour ago we confirmed a Piercing Line Daily Candle Close while showing Hidden Bullish Divergence. If doge can continue the momentum into tomorrow we will have a confirmed Bullish MACD crossing and that should hopefully be a sign that doge is ready to test the highs.
Long
by RizeSenpai