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Reversal

PSNY Giant Falling Wedge (reversal) Weekly & DailyFalling Wedge Pattern for PSNY chart, Polestar In this chart analysis, it's evident that there's a potential buying opportunity if we manage to reclaim the indicated level (previous gap after Earnings). This could take 30 to 45 days, as institutional investors are not very interested in buying this stock. However, it's crucial to exercise caution and patience, especially considering the need for a CMF (Chaikin Money Flow) reversal within the green zone. While there's a possibility of a lower buy-in, it's important to remember that there are no guarantees of a bounce at this stage. Traders should keep a close eye on CMF indicators to confirm a favorable entry point before taking action. In addition, is there a potential positive divergence in the PPO (in formation)
NASDAQ:PSNYLong
by Maximus20000
MACD-Divergences: Assessing Present Varying Exemplifications!_____ Hello Traders Investors And Community, _____ Welcome to this tutorial in which I will analyze the MACD-Divergence and its various types that can come up in the market movements. The MACD is an indicator developed in 1986 and since then established as a primary indicator in the oscillator types besides the RSI or stochastic. The indicator mainly has the function of spotting reversals and potential entry points into the market to catch the appropriate values and upcoming reversal developments. Although the indicator can be used as a single signal for market action only it is best combined with other technical analysis aspects such as candlesticks or volume. The main timeframe to apply the indicator should be the daily timeframe, it can be also applied to higher timeframes such as the weekly to assess broader trends. The indicator can also be applied on lower timeframes such as the 4-hour or hourly however in this case the fake signals getting higher. The MACD consists of 3 main elements, the first is the MACD-Line marked in my chart in orange which is calculated by the 12-day EMA (Exponential-Moving-Average) minus the 26-day EMA. The second element is the signal-line which is a 9-day EMA. Further comes the histogram which measures the distance from the MACD-Line to the signal line and the histogram is positive when the MACD-Line is above the signal-line as well as negative when it is below. The main signal happens when the MACD-Line crosses the signal-line when it crosses from the downside to the upside this is typically seen before a bullish reversal takes place and the same in reverse with the MACD-Line crossing the signal-line down when a bearish reversal takes place, in both cases also the histogram changes from positive to negative or negative to positive. In any case, it is always necessary to combine the MACD with the current price-action happening as in this case comes the interesting part with the divergences happening that can lead to dedicated signals. These divergences happen when there is a discrepancy between MACD and the actual price-action happening indicating a potential change in direction of actual price-action as the MACD shows up with these signs. In any case, it is unavoidable to consider the price-action together with the MACD as otherwise, it can lead to catching a fake-out and getting stopped out of the position what should be avoided in trading. The MACD also does not typically spot overbought or oversold conditions as it is an indicator consisting of EMAs it represents the previously developed price-actions in relation to the ongoing and upcoming price-actions. _____ Regular MACD Divergences: __ Classical MACD Crossover - The Classical MACD Crossover comes up when the MACD-line crosses the signal-line either from the upside to the downside or from the downside to the upside. Both versions can indicate a reversal into the direction the MACD-line crossed the signal-line however the timeframe and structure is important here. When this crossover happens on the lower timeframes below 6-hours it can happen that there are many fake signals with several crossovers behind each other while the price-action is actually trending into one direction. The higher timeframes such as the daily are therefore the best to apply this regular classical MACD crossover. Classical MACD Histogram Divergence - This divergence occurs when the histogram has formed a new high together with the price-action, for example, the histogram forms the new high at 0.3 in the MACD-histogram then the price-action moves further and forms a higher high exceeding the previous one however the MACD-histogram does not do a higher high also while staying below the 0.3 level. This indicates that the market is likely to reverse into the other direction because the histogram does not correspond with the actual price-action and therefore forms a divergence. This can be applied in the reverse direction as well and a good combination would be to look also at the volume or overbought and oversold conditions. Histogram Divergence Fakeout - In this case, it is the crucial part of the histogram divergence. The price-action and MACD fulfilled the initial requirements for a classical MACD histogram divergence and the price-action should markdown after forming the final high and the divergence, however in this case it does not happen instead the price-action moves lower a little bit signaling the possible normal development after this signal and then moves up again exceeding the previous high and stopping out traders who may have entered the market because of the divergence, after that the price-action can markdown finally and move lower, therefore it is necessary to look at the price-action also and see if the market is really ready to markdown after the signal. __ Bearish Regular Divergence Ⅰ - The Bearish Regular Divergence Ⅰ is a divergence in the price-action that marks two important confirmations including this a technical confirmation in the MACD normally seen in price-action. In this divergence, the price-action marks consecutive higher highs while the MACD forms a double-top with the rejection at the upper baseline confirming the double-top. This divergence is likely to reverse the previously established bullish trend to the downside and continue with bearish determinations. It is important to watch out for fakeouts before potentially entering and when this possibility is low it can be a good entry. Bullish Regular Divergence Ⅰ - This is the counterpart to the Bearish Regular Divergence Ⅰ. In this case the price-action marks lower lows in the structure in the best case also with falling volume and momentum while the MACD makes a double-bottom which is a good sign when both form that the price will likely reverse into the bullish direction. A trendline breakout of the previous established lower highs in the downtrend can also add additional confirmation to the final bullish reversal. __ Bearish Regular Divergence Ⅱ - This is a very interesting divergence as it combines the classical price-action formation double-top with the lower highs forming in the MACD. A confirmed double top alone can also be a strong signal for a reversal nevertheless with the additional MACD making lower lows this can add to the main bearish reversal coming in and accelerating it. A valid confirmation will take place when the price-action regularly confirms the double-top with the neckline breakout to the downside. Bullish Regular Divergence Ⅱ - Here is another divergence in which the price-action forms a reliable reversal-formation, in this case, a double-bottom which also can alone be the decisive factor for the final reversal, together then with the higher lows forming in the MACD it is a strong signal to reversing the trend into the bullish direction and similarly to the Bearish Regular Divergence Ⅱ it finally confirms with the neckline breakout by the established double-bottom with proper volume to the upside. __ Bearish Regular Divergence Ⅲ - This divergence has a good and appropriate application in the market formations to form. In this divergence, the price-actions form higher highs while the MACD forms lower lows signaling a bearish reversal to take place. A good confirmation occurs when the price-action closes below the lastly established lows and after that continues also further to form further bearish continuations, it can be a good point to spot the final reversal when the MACD looks like it develops the next lower high. Bullish Regular Divergence Ⅲ - This is the exact counterpart of the Bearish Regular Divergence Ⅲ while the price-action forms lower lows in the structure the MACD develops higher highs showing this given divergence and likely to indicate the bullish reversal to take place sooner or later. Additionally, a falling volume and momentum in the actual price-action will lead to more increased validations followed by an upcoming rise in volatility above previously lower highs, these structures and developments are always also important. _____ Hidden MACD Divergences: __ Bearish Hidden Divergence Ⅰ - This divergence is actually the counterpart to the Bearish Regular Divergence Ⅰ and in this case, the MACD also forms a double top in the structure however unlikely as in the Bearish Regular Divergence Ⅰ in this case the price-action forms lower highs in the structure showing the exceptional weakness of the bulls as the price-action does not manages to maintain further higher highs, this is why the formation is finally likely to confirm bearishly to the downside and the reversal took place. Bearish Hidden Divergence Ⅰ - In this divergence the MACD forms a double-bottom with both lows forming a lower baseline in the MACD-histogram structure while the price-action forms higher lows which is very important here as such a constellation is normally defined as bullish with the possibility to reverse, the double-bottom in the MACD then confirms the further bullishness to establish and likely bullish volatility to show up in the structure, the requirement is that the established uptrend-line does not invalidate to the downside. __ Bearish Hidden Divergence Ⅱ - The next divergence is forming a classical reversal-development with the formation of a double-top in the price-action as the two highs form a horizontal baseline where the price-action rejects while the MACD is developing higher highs in the structure. In this case, the final confirmation sets place when the price-action breaks out below the neckline of the double-top in the structure which is the set-up for the further continuations bearishly to the downside, the best is to wait on the final confirmation before considering moving into. Bullish Hidden Divergence Ⅱ - This classical bullish reversal-formation marks out the potential stopping of the downtrend with two lows building the baseline of a potential double-bottom while the MACD is establishing this lower low structure it is the proper further confirmational part to develop a sufficient bullish reversal which will finally take place when the price-action breaks out above the upper neckline of the double-bottom to complete it and show up with further continuations to the upside. __ Bearish Hidden Divergence Ⅲ - When the price-action forms lower highs that do not maintain new higher highs in an uptrend it is always a sign that the uptrend is struggling and that it is likely to reverse together then with the higher highs divergence in the MACD to form the final bearish reversal has a high possibility to emerge which will validate when price-action moves below the previous lows in the uptrend and continues to the south. Bullish Hidden Divergence Ⅲ - With this form the uptrend and the higher highs structure that developed in the price-action have a tendency to reverse as the MACD forms the lower lows in the structure signaling that the MACD is already doing the markdown that follows also in the price-action. In this case the final confirmation will take place with a breakout below the established ascending trend-line after which a bearish continuation will likely follow up. _____ Therefore moving through all these important different forms the MACD can be a substantial indicator for spotting reversals in the structure when done right. It is always necessary to maintain the objection to the current situation and further technical factors to apply the MACD-divergences rightly. In this manner, thank you everybody for watching, support the idea with a like and follow or comment, have a good day as well as weekend, and all the best to you! Information provided is only educational and should not be used to take action in the markets. _____
BYBIT:BTCUSD.PEducation
by VincePrince
20
CADJPY - Approaching A Strong Supply 🔎Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. CADJPY has been overall bullish trading inside the rising channel in orange, however it is currently approaching around the upper trendline. Moreover, the zone 109.0 is a strong supply. 🏹 So the highlighted red circle is a strong area to look for sell setups as it is the intersection of the green supply and upper orange trendline acting as a non-horizontal resistance. As per my trading style: As CADJPY approaches the orange circle zone, I will be looking for bearish reversal setups (like a double top pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
EURNZD - Trend-Following Setup ↗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. EURNZD has been overall bullish trading inside the rising channel in red and it is currently approaching the lower bound / red trendline. Moreover, the zone 1.8 is a strong support. 🏹 So the highlighted red circle is a strong area to look for trend-following buy setups as it is the intersection of the blue support and lower red trendline acting as a non-horizontal support. As per my trading style: As EURNZD approaches the lower red circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
5
High Probability Reversal On CHFJPYI continue to focus on structural moves on higher timeframes. This is another setup I identified, and here's a breakdown of how I derived my downside bias. FOREXCOM:CHFJPY has been in an uptrend since January 2023. It topped out on August 21st of this year. Price retests the high and fails to break higher. Just a day after price retests the daily high, there was a large selloff. This is the first sign that buying volume is becoming more and more insufficient in propping price higher. Now that I plotted upper and lower range bound levels, price broke below the 164.719 level in the previous session close. In the current session, price is continuing to trend lower, which further supports my bearish bias.
Short
by FinancialGamblR
AMAZON - 3 year old trendline broken?! See it on the chartHello, traders, investors and community! Today i am taking a sharp look on the retail-giant AMAZON and what we can expect in the next weeks and months! So lets start, looking on the weekly chart of AMAZON you can see this long trendline which begun january 2015 and ended october 2018 with a sharp decline in price, you can see it on my chart. It is marked with the two blue trendlines , one is straight and the other one is striped. So what does AMAZON do now?! We have a huge resistance above us at the 2000 - 2050 level which you can see in striped red trendline in the chart. This is a critical zone for AMAZON because when we get rejected there, the possibility for an double top gets nearer. You can also see this huge red selling volume at the break-out of that important trend-line signaling a shift in price action and heavy selling volume . If the highly possible scenario that we get rejected a second time at the 2000 - 2050 level kicks in a double top will form with targets at 830 - 840, you can see it on the chart with price projection. Also the RSI sets some bearish tone for the overall outcome, you can see in my chart that it touched the overbought area several times the last years without coming back. Now RSI struggles to make new highs in the overbought are and is consolidating in the middle range, a possible scenario is here when we see new decline in the price that RSI also falls back out of the channel which you see in the chart. The overall tone is bearish despite that AMAZON makes some bull-moves the last time. Normally you see this on a top before other declines happen. The fact that this major trendline which held for 3.75 years is broken makes the big picture for AMAZON look ugly. But, however, as traders we can also make money with falling prices. But this andvantage should not be taken for granted, it should be done smart and with the right look for market conditions! I hope you enjoyed this analysis on AMAZON! See you. Information provided is only educational and should not be used to take action in the markets. Thank you.
NASDAQ:AMZNShort
by VincePrince
6
BTC - Bulls Are In Control - Short-Term ❗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. on H4: Left Chart As per my last video analysis, BTC broke above the 26,200 previous major high so the bulls took over short-term. Now we are expecting a continuation till the 27,400 supply zone marked in red. on H1: Right Chart The bulls will remain in control, unless the last minor low at 25,815 is broken downward again. 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
27
EURUSD - Potential Reversal ⁉️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. on DAILY: Left Chart EURUSD has been overall bullish trading inside the flat rising channel in brown, and it is currently approaching the lower bound / trendline and support zone. Hence, we will be looking for trend-following buy setups on lower timeframes. on H1: Right Chart EURUSD formed a valid channel in red but it is not ready to go yet. For the bulls to take over, we need a momentum candle close above the last high marked in gray. In this case, we will expect a shift in momentum from bearish to bullish. Meanwhile, until the buy is activated, EURUSD would be overall bearish and can still trade lower inside the support. 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
7
XRP - Follow The Trend 🏹Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. on Weekly: Left Chart XRP has been overall bullish from a long-term perspective trading inside the rising wedge pattern and it is currently sitting around the lower bound / blue trendline. Moreover, the zone 0.5 is a strong support and round number. 🏹 Hence, XRP is sitting around a strong area to look for buy setups as it is the intersection of the green support and lower blue trendline. Thus, we will be looking for buy setups on lower timeframes as long as the 0.46 support holds. on H4: Right Chart XRP has been stuck inside a range. For the bulls to take over short-term, we need a momentum candle close above the last minor high in red. And then, for the bulls to remain in control from a medium-term perspective, we need a break above the last major high in blue around 0.56. Meanwhile, until the bulls take over, XRP would be bearish and can still dive inside the 0.46 - 0.50 support zone. 📚 Always remember to follow your trading plan regarding entry, risk management, and trade management. Good luck! And always remember: All strategies are good if managed properly! ~Rich
by TheSignalyst
19
GBPCAD - Trend-Following Setup ↗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. GBPCAD has been overall bullish trading inside the flat rising channel in orange and it is currently approaching the lower bound / orange trendline. Moreover, the zone 1.68 is a strong support. 🏹 So the highlighted orange circle is a strong area to look for trend-following buy setups as it is the intersection of the green support and lower orange trendline acting as a non-horizontal support. As per my trading style: As GBPCAD approaches the lower orange circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
2
BTC - Inside The Range Again ⏱Greetings, TradingView Family! This is Richard, also known as theSignalyst. After being rejected at the 28,000 supply zone and breaking below the recent low highlighted in blue mentioned last week, BTC is currently trading near the lower boundary of the range. 📈 For the bulls to take over, it's crucial for BTC to surpass the 26,200 level. If this occurs, we can expect further upward momentum toward 27,400 red supply zone. 📉 Meanwhile, BTC would be bearish and can still test the previous major low in orange at 25,300 or even breaks it downward. Now, which scenario seems more likely to unfold next, and why? 📚 Always remember to follow your trading plan when it comes to entry, risk management, and trade management. Good luck! Remember, all strategies are good if managed properly! ~Rich
by TheSignalyst
28
EURAUD - Looking For Buy Setups Already ↗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. As per my last analysis (attached on the chart), we were looking for sell setups around the upper bound of the orange channel. EURAUD rejected our resistance, traded lower, and now approaching the lower bound of the channel. Moreover, the zone 1.655 is a strong support. 🏹 So the highlighted orange circle is a strong area to look for trend-following buy setups as it is the intersection of the green support and lower orange trendline acting as a non-horizontal support. As per my trading style: As EURAUD approaches the lower orange circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...) 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Long
by TheSignalyst
6