Moving Averages
What is Divergence?Divergence in trading occurs when the price of an asset moves in the opposite direction of a technical indicator. This mismatch indicates that the momentum behind the price action may be weakening, often suggesting a potential reversal. By learning to spot divergence, traders can anticipate market changes, either as a reversal in trend (regular divergence) or a trend continuation (hidden divergence).
Types of Divergence
Regular Divergence
Hidden Divergence
1. Regular Divergence
Regular divergence is a classic form that suggests a potential trend reversal. It happens when the price action and an oscillator (like RSI or MACD) display conflicting information, often indicating that the current trend may be losing strength.
Types of Regular Divergence:
Bullish Regular Divergence: Occurs when the price makes lower lows, but the indicator makes higher lows. This suggests a potential reversal to the upside as the selling momentum weakens.
Bearish Regular Divergence: Occurs when the price makes higher highs, but the indicator forms lower highs. This indicates potential downside momentum, often preceding a downtrend.
How to Identify Regular Divergence:
Use an oscillator such as the RSI, MACD, or stochastic indicator.
Look for situations where the price action forms new highs or lows, while the oscillator forms opposite lows or highs.
Confirm the trend by observing the price trendlines to determine the type of regular divergence (bullish or bearish).
Trading Regular Divergence:
Bullish Regular Divergence: When you identify bullish regular divergence, consider entering a long position once the price shows signs of reversal, like a bullish engulfing candle or another bullish reversal pattern.
Bearish Regular Divergence: For bearish regular divergence, a short position may be taken once you confirm a bearish reversal pattern, such as a bearish engulfing candle or shooting star formation.
Example:
If the price of a stock is making higher highs but the RSI is making lower highs, this is a bearish regular divergence. You could consider shorting the asset or closing long positions as a precaution, anticipating a potential trend reversal.
2. Hidden Divergence
Hidden divergence indicates potential trend continuation. It suggests that although there may be a pullback, the primary trend will likely resume.
Types of Hidden Divergence:
Bullish Hidden Divergence: Occurs when the price forms higher lows, but the indicator makes lower lows. This pattern signals that the uptrend is likely to continue.
Bearish Hidden Divergence: Occurs when the price makes lower highs, but the oscillator makes higher highs, indicating a potential continuation of a downtrend.
How to Identify Hidden Divergence:
Observe the trend direction of the price. Hidden divergence typically appears during pullbacks in a strong trend.
Use the oscillator (RSI, MACD, etc.) and compare the highs and lows formed by both the price and indicator.
Confirm the pattern: if the price and indicator form opposing highs or lows, it may indicate hidden divergence.
Trading Hidden Divergence:
Bullish Hidden Divergence: Enter a long position after identifying bullish hidden divergence, especially if the primary trend is upwards and the oscillator is showing a lower low.
Bearish Hidden Divergence: A short position can be considered when bearish hidden divergence is identified, and the primary trend is downwards, with the oscillator showing a higher high.
Example:
Suppose an asset’s price makes higher lows in an uptrend, but the RSI makes lower lows. This indicates bullish hidden divergence, suggesting that the pullback might end, and the uptrend is likely to continue. Enter a long position, placing a stop loss below the recent swing low to manage risk.
Indicators Used for Identifying Divergence
Relative Strength Index (RSI): RSI measures the strength and speed of price movement, making it ideal for identifying overbought and oversold conditions.
Moving Average Convergence Divergence (MACD): MACD tracks the difference between two moving averages of the price and can be used to detect shifts in momentum.
Stochastic Oscillator: This oscillator helps detect potential turning points by comparing the closing price to the range over a set period.
Each of these indicators helps identify divergence differently. For example:
If RSI or Stochastic is diverging from price action, it may indicate that momentum is waning.
MACD can be useful to spot both regular and hidden divergences, especially on larger timeframes.
How to Trade Divergence
Confirm Divergence: Use divergence to identify a potential reversal or continuation pattern, but confirm it with additional signals such as candlestick patterns or volume analysis.
Set Entry Points: Wait for a price action signal (e.g., a candlestick pattern) in the direction indicated by the divergence. A bullish divergence might signal a buying opportunity after a bullish candlestick, while a bearish divergence could indicate a selling opportunity after a bearish pattern.
Use Stop Loss Orders: Place a stop loss slightly below or above recent highs or lows to manage risk. For example, in bullish divergence, place a stop loss below the swing low to protect against downside risk.
Set Profit Targets: Use support and resistance levels, Fibonacci retracement levels, or moving averages to set profit targets.
Tips for Successful Divergence Trading
Combine with Other Indicators: Use moving averages or trendlines to confirm the overall trend direction.
Choose Longer Timeframes for Stronger Signals: Divergence on longer timeframes (e.g., daily or weekly) tends to produce stronger signals than shorter timeframes (e.g., 15-minute or hourly).
Don’t Trade Divergence in Choppy Markets: Divergence is more effective in trending markets. Avoid using divergence in low-volume or range-bound conditions, as it could result in false signals.
Stay Aware of False Signals: Not all divergences result in profitable trades. Always use risk management tools, such as stop losses and position sizing, to minimize potential losses.
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✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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Long swingI'm deploying a multi-timeframe approach here, focusing on a swing trade setup that aligns with both trend and momentum indicators. Here's the core of the strategy:
Entry Criteria: I look to enter on a break above a recent higher high combined with a flat to rising 5-day moving average. Additionally, I’m observing the anchored VWAP from the most recent high (to the left on the chart); it should ideally be flat or rising to confirm sustained interest.
Volume and Price Requirements: Only trading stocks with at least 300,000 shares in daily volume and a price above $3, ensuring liquidity and relevance for momentum.
Trend Confirmation: On the daily timeframe, the stock must be making higher highs and fall within an early Stage 2 uptrend based on Stage Analysis, indicating the start of an uptrend.
Stop Loss: My stop is set just below a recent significant low (higher low) on the 30-minute chart to keep risk in check. If this low is penetrated before entry, I cancel the trade to avoid premature breakdowns.
DOGEUSDT.P
We are looking at DOGE on the 30-minute timeframe. Yesterday's short was liquidated as the stop-loss (SL) got hit. Today, we're trying again on the 30-minute timeframe with a tighter SL. At the moment, the price is below the 20 EMA, but that's the only bearish signal. This is more of a revenge trade, so exercise caution, and of course, this is not financial advice!
See you later, and stay safe!
BTCUSDT Golden Cross Signals Strong BullishBINANCE:BTCUSDT daily chart shows a Golden Cross, a pattern that has historically been a strong indicator of bullish momentum. A Golden Cross occurs when the 50-day moving average (MA 50, in purple) crosses above the 200-day moving average (MA 200, in blue). This crossover is generally viewed as a signal of a long-term trend reversal, suggesting that bullish momentum is building. Whenever this crossover has occurred in the past, Bitcoin has experienced substantial upward price movement in the following months.
Currently, CRYPTOCAP:BTC has broken through broadening wedge resistance levels on the daily chart and is trading near $71,000. This price action aligns with the Golden Cross, reinforcing the potential for a continued bullish move. With BTC consolidating above key levels, a breakout above $70K could trigger further buying interest and sustain the uptrend.
If BTC can hold its position above the 200-day MA and breakthrough additional key resistance levels, the price could continue to climb. Potential targets range from 100-200% gains from this level, similar to past Golden Cross rallies.
Regards
Hexa
CAPITAL A - Uptrend may extend ?CAPITAL A - Current price RM1.00
The stock is UPTREND because :
i) Price is above EMA 50 & 200
ii) Price is above ICHIMOKU CLOUD
iii) The high is getting higher and the low is getting higher
Based on ICHIMOKU CHART technique, today price made a breakout above CHIKOU SPAN resistance (RM0.990 - light blue resistance line).Technically it is a buy signal.
Price target : RM1.12 (the high of 17 August 2023)
Support 1 : RM0.950 (Aggresive Trader)
Support 2 : EMA 50 may acts as support level (Conservative Trader)
$SPY October 29, 2024AMEX:SPY October 29, 2024
15 Minutes
For the fall 586.12 to 574.41 AMEX:SPY retraced 78%. Hence, I expect only a double bottom for this move.
For the rise 574.41 to 584.46 AMEX:SPY retraced 61.8%.
So, holding 576 uptrends to continue.
In 60 minutes 575-576 is 200 averages.
So, the shorts initiated yesterday will be covered at 579. If I get a lower. I am lucky.
SL at 582 for a zero trade.
At the moment I expect 579 or 575 to provide a good support.
Long is still above 585 only.
I am usually negative bias as long as AMEX:SPY is below moving averages especially 200 or 100 in 15 minutes.
Ready for the next wave?After reaching its low in early August, the chart of Unity Software Inc. has shown a textbook bullish move. The Elliott Wave count is marked on the chart. Now, with the correction phase seemingly complete, the price appears poised to kickstart the next bullish impulse from the 38.2% Fibonacci level, supported by the 50-day SMA.
EUR/AUD bounce delivers good news for bullsEUR/AUD closed above the 50-day moving average on Friday after a successful break of 1.6318.
After opening Monday marginally higher, the price pushed lower to retest 1.6318 before bouncing strongly towards the European open, providing the framework for the bullish setup.
It’s not appealing from a risk-reward perspective to buy around these levels with the 200-day moving average in close proximity, so my preference is to wait for a potential pullback towards the 50-day moving average, providing a better entry level while allowing for a stop to be placed below 1.6318 for protection.
The 200-day moving average would be the initial trade target. If the price were to trade through that level, 1.6450 would be the next potential target.
With MACD and RSI (14) providing bullish signals on momentum, the preference remains to buy dips and breaks rather than selling rallies.
Good luck!
DS
PARACABLES NSE RC&H BO PROABLE DTF/WTF SWING/POSITIONAL PARACABLES STOCK Analysis
TRADE PLAN (DTF Close Price for SWING /POSITIONAL)
ENTRY - 78 25 % Qty, Add 50% qty at 87 and progressively DTF/WTF Close
SL - 65
TARGET -SWING -95 TGT01-- 117
Hold For a 1-2 Year or TGT
Chart Pattern :
STOCK touched a RBC of 5M touching the previous High, Price got rejected and now on a correction forming a Handle to the Cup, Wait for Channel BO to enter.
INDICATORS EMA :
The Price is Currently Trading below 200EMA, DTF and 20EMA is below 50EMA in DTF. STOCK EMAs are currently in Transitional stage of Ascending alignment, indicating early start of a bullish reversal Trend on DTF.
FIBO/E :
Volumes: The VOLUME RISING then Decreasing with Price correction and Now Low
Keep in your Priority Watch List
Disclaimer: For Education/Reference Purpose Only, Trade at your Own Risk with correct position sizing and SL based on your Risk appetite (Exit when price closes 7to8% below your Entry).and re enter when trend reverses in the direction of your POV...
Trail Your SL progressively. Learn/Know and Review the Stock trading Technical Terminology. Check Verify the Financial fundamentals of the Stock and Seek Advice from a Certified Financial Advisor prior to Investing. Prefer Entry with 25% quantity, Add in Tranches of 25%-50% as prices moves upwards recommended.
MTFA- Multiple Time Frame Analysis
DTF -Daily Time Frame
WTF-Weekly Time Frame
MTF- Monthly Time Frame
ATH-All Time High
LTH -LifeTime High
RBC&H-Rounding Bottom Cup/Handle
BO- Breakout Close
EMA -Exponential Moving Average
FIBO R/E -Trend based Fibonacci Retracement/Extension
SL Stop Loss
TBD- To be Decided
CHoCH- Change of Character Bullish/Bearish
MSB/BOS -Break Out Structure
FVG Fair Value Gap
20VMA -20Volume Moving Average
SWING/POSITIONAL Trade
Why Smart Money is BEGGING for a Bitcoin Dip (Technical Analysis📈 Why Smart Money is BEGGING for a Bitcoin Dip (Technical Analysis)
MAC Strategy: Your Dip-Buying Blueprint
Monthly and weekly Moving Average Channel indicators are bullish. Here's your shopping list:
- Weekly MAC support: $59,234
- Monthly MAC support: $55,943
These aren't dips - they're gifts. When Bitcoin touches these levels, smart money moves fast.
Ducks in a Barrel Strategy Says "Load Up"
Weekly timeframe say we want to buy the dip. :
- 39 & 52 week MAs trending up and pulling away from each other (bullish momentum)
- Strong uptrend intact in spite of the several months of consolidation..
Perfect storm setup for Ducks in a Barrel:
1. Bitcoin undervalued vs gold/treasuries
2. Stochastic hits oversold at the same time
If you see a Bitcoin dip, REMEMBER: Dips are Gifts.
Stop Missing These Setups
I'll be honest - finding and catching these dips isn't rocket science, but timing is everything. Ready to level up?
- Learn how to implement rules based & non-discretionary trading to become profitable
- Learn to interpret the Commitment of Traders data to gain a major edge in the markets
- Join live market analysis sessions
- Learn my exact entry triggers
- Master risk management
DM me for more information. Serious traders only.
Trading Disclaimer
TRADING CRYPTOCURRENCIES INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. Past performance is not indicative of future results. The information provided in this analysis is for educational purposes only and should not be considered financial advice. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change without notice. I am not a licensed financial advisor. All trading decisions and consequences are your responsibility.
50 SMA Rising- Positional TradeDisclaimer: I am not a Sebi registered adviser.
This Idea is publish purely for educational purpose only before investing in any stocks please take advise from your financial adviser.
Its 50 SMA Rising Strategy. Suitable for Positional Trading Initial Stop loss lowest of last 2 candles and keep trailing with 50 days SMA if price close below 50 SMA then Exit or be in the trade some time trade can go for several months.
Be Discipline because discipline is the Key to Success in the STOCK Market.
Trade What you see not what you Think
50 SMA Rising- Positional TradeDisclaimer: I am not a Sebi registered adviser.
This Idea is publish purely for educational purpose only before investing in any stocks please take advise from your financial adviser.
Its 50 SMA Rising Strategy. Suitable for Positional Trading Initial Stop loss lowest of last 2 candles and keep trailing with 50 days SMA if price close below 50 SMA then Exit or be in the trade some time trade can go for several months.
Be Discipline because discipline is the Key to Success in the STOCK Market.
Trade What you see not what you Think
50 SMA Rising- Positional TradeDisclaimer: I am not a Sebi registered adviser.
This Idea is publish purely for educational purpose only before investing in any stocks please take advise from your financial adviser.
Its 50 SMA Rising Strategy. Suitable for Positional Trading Initial Stop loss lowest of last 2 candles and keep trailing with 50 days SMA if price close below 50 SMA then Exit or be in the trade some time trade can go for several months.
Be Discipline because discipline is the Key to Success in the STOCK Market.
Trade What you see not what you Think
BTCUSDTHi. Currently, Bitcoin is approaching a potential Golden Cross, where the 50-day moving avge is expected to cross above the 200-day moving average. This technical indicator is often seen as a bullish signal, suggesting a potential upward trend in Bitcoin's price.
Here are some key points about Bitcoin's situation:
Current Situation: The 50-day moving average of Bitcoin's price has started to rise and is expected to surpass the 200-day moving average soon.
Historical Context: The last Golden Cross for Bitcoin in November 2023 led to a significant price increase, with Bitcoin's price soaring by over 116% to reach an all-time high of $74,000 in March 2024.
Potential Price Surge: Analysts suggest that if a Golden Cross occurs, it could potentially push Bitcoin's price towards $100,000.
Market Volatility: While a Golden Cross is a bullish signal, the cryptocurrency market remains highly volatile, and rapid growth is not guaranteed.
Genus Power Infra: Bullish Breakout – Buy now for higher targets🔍 Technical Analysis: NSE:GENUSPOWER (NSE: GENUSPOWER)
1️⃣ Overview:
📈 Current Market Price (CMP): ₹430.15 (+2.26%)
🗓️ Date & Time: As of 15:25 (UTC+5:30)
🕹️ Chart Analysis: Daily (1D)
2️⃣ Technical Indicators Overview:
📊 Moving Averages:
🟢 50-Day EMA: ₹399.89, currently acting as a support zone.
🔵 200-Day EMA: ₹332.71, indicating the longer-term trend remains positive.
📦 Volume Profile: Strong demand visible between ₹360-₹380, suggesting robust buying interest at lower levels.
📈 MACD: Bullish crossover with the MACD line above the signal line, implying momentum is still positive.
MACD Line: 3.76
Signal Line: 1.04
Histogram: 📈 Positive, indicating rising momentum.
📉 Williams %R (14): At -5.59, signaling overbought conditions, which might result in a short-term pullback.
💹 Stochastic RSI (14, 3): At 100, indicating strong bullish momentum, though caution is advised as overbought zones can precede minor corrections.
🟣 Parabolic SAR: Positioned below the price, supporting the ongoing uptrend.
3️⃣ Fibonacci Retracement Levels:
The stock is retracing from the swing high of ₹451.55 to the swing low of ₹351.05.
📐 38.2% Retracement: ₹399.30 – Strong support.
📐 50% Retracement: ₹414.05 – Intermediate resistance.
📐 61.8% Retracement: ₹428.80 – Currently breached, signaling bullish strength.
📐 78.6% Retracement: ₹442.80 – Next resistance level to watch .
4️⃣ Rationale for Buy:
🚀 Breakout above 61.8% Fibonacci Level: The breach above ₹428.80 indicates a potential continuation of the upward move.
🔥 Bullish Momentum: MACD crossover, Stochastic RSI in overbought territory, and Parabolic SAR below the price all point to a continuation of the bullish trend.
📈 Volume Surge: Increased volume activity supports the bullish move, suggesting robust buying interest.
📦 Demand Zone: The significant demand between ₹360-₹380 acts as a strong base, providing a good risk-reward opportunity for entry.
5️⃣ Recommendation:
🔔 Action: Buy
🎯 Target 1: ₹442.80 (78.6% Fibonacci Level)
🎯 Target 2: ₹451.55 (Recent Swing High)
🛑 Stop Loss: ₹414.05 (50% Fibonacci Level) to protect against downside risk.
6️⃣ Risk Management:
📥 Entry Strategy: Consider entering near the current price or on minor pullbacks towards the 61.8% retracement level (₹428.80).
⚖️ Risk-to-Reward Ratio: The trade setup offers a favorable risk-to-reward ratio of at least 1:2 based on defined targets and stop-loss levels.
⚠️ Disclaimer:
This analysis is based on technical indicators and market patterns and is intended for educational purposes. Market conditions may change, and this is not investment advice. Please conduct your own research or consult a financial advisor before making trading decisions.
#GenusPower 🚀 #TechnicalAnalysis 📊 #StockMarket 📈 #FibonacciLevels 📐 #SwingTrading 💹 #MACD 🔵 #StochasticRSI 💠 #VolumeProfile 📦 #BuyRecommendation 🛒 #IndianStocks 🇮🇳 #NSE 📉 #FinogentSolutions 💼
TITAGARH - Confirmation of reversal pendingcurrently trading below 20EMA band and also RSI is in bear zone, also the market condition is not good, hence I would suggest to wait for confirmation of the bull run.
Bull Run Criteria:
1. The stock begins trading above the 20 EMA band (high, close, and low of the 20 EMA).
2. RSI moves above 60, indicating stronger buying momentum.
3. Recovery signs appear in the Midcap and SmallCap Index.
Earning is expected on 29th Oct 2024, which may also affect the stock price.
This analysis is based on personal insights and is for informational purposes only. It should not be considered financial advice. Market conditions can vary, and individual risk tolerance should be considered. Please consult a financial advisor before making any investment decisions.