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Stochastic-hidden-divergence

Inside bar set up on GBP/USDRationale for taking a short trade on GBP/USD - down trend (lower highs and lower lows) - price pulled back into a previous level at 1.5500 and 200 ema, and closed below both thus encountering resistance - an inside bar formed just below this level of resistance - in its pull back, price also found trend line resistance (4th retest) and closed below - oscillator hidden/trend continuation divergence entry - below low of inside bar stop loss - above high of mother bar target - at or below previous low
Short
by amanpaulbhogal
Sell sign on EUR/GBPUsing the following to back a short entry on EUR/GBP on the daily chart: - inside bar - resistance at ~0.7120 - mother candle rejects: - 50 ema and closes below - 0.786 Fibonacci level and closes below - Fibonacci cluster - falling trend line for the 4th time closing within the downward trend channel - Stochastic hidden bearish divergence (comparison of swing highs), and Stochastic and RSI convergence entry - below low of inside bar stop loss - above high of mother bar target - previous swing low or lower
Short
by amanpaulbhogal
AUD/CHF shorting signsSimilar to AUD/CAD, AUD/CHF is setting up for a short opportunity with the following in view: - inside bar following high test bar in pull back to 50ema - price rejection at resistance at ~0.8210 - price retraced to 0.618 Fibonacci level which coordinates well within proximity of resistance at ~0.8210 - Stochastic and RSI in overbought territory - Stochastic and RSI hidden divergence (bearish trend continuation) entry - below inside bar stop loss - above mother bar (above previous high test bar) target - previous swing low at ~0.7830, or lower
Short
by amanpaulbhogal
Short AUD/JPYThe AUD/JPY daily chart displays consecutive lower highs and lower lows with a potential short setup to continue the visible falling trend (supported also by downward trendline). The current corrective phase seems to be running out of steam in initiation of a potential impulsive phase, with the production of a bearish reversal price bar: - ricocheting off a previous level at ~95.20; - rejecting the 50% retracement level which is contiguous to 95.20; - bouncing off and (most likely) closing below the 50 ema; and - bumping into the falling trend line encountering resistance. Convergence is observable on RSI and hidden divergence on Stochastic. Both Stochastic and RSI are in overbought territory and are ostensibly preparing for a reversal. Entry - below the low of today's bearish reversal bar close Stop loss - above the high of today's bearish reversal bar close Target - first profit taking zone at previous low/swing low (91.75), and possibly lower at 91.00 if swing low violated * Ignore the placement of the arrow indicating RSI convergence.
Short
by amanpaulbhogal
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