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Divergence

EURUSD Div Invalidated, Alternate tagged perfectlyOn July 2nd I put out a video, discussing being "Stuck in the middle", and mentioning the Bearish Monthly Ichi structure. I admittedly was thinking EURUSD would be Bearish for the week, but I did mention where I'd be invalidated; A break above the descending Daily Forecast Line. We did just that, broke the Daily Forecast, and proceeded to move to 1.112 and more, which was my anticipated alternate target. In this video, I show out next anticipated levels above, using Ichi Forecast Lines, as well as Ichi Wave Theory.. and the invalidation areas to the downside, should the market choose lower, versus higher. As always, good luck, have fun, and practice solid risk mgmt. P.S. -- When mentioning the Divergence, I say "Lows", when I meant "Highs"... so forgive me for that confusion.
Long
by mrjones2020
GOLD/DOLLAR: Divergence in short term?Divergences or correlations are rarely always valid, there are many variables at play and the monetary policy context plays a fundamental role. I don't want to do an economic analysis here, but just share this idea of possible divergence between Dollar and Gold in short term. In mid-term, I think we will see a warm autumn and volatility could reign in the markets for a few months. Together with our supporters we are following the evolution of events in our blog, and Gold & Dollar will be our drivers at least until the end of 2023. In conclusion, this divergence could be useful in our analyses, always keeping in mind that it is only temporary! GOLD FUNDAMENTAL ANALYSIS Q1 Like to support my work. Trade with care!
OANDA:XAUUSD
by TheAnonymousBanker
3
Convergence & DivergenceOne of the important concepts that traders should understand is the difference between divergence and convergence, two terms that are often used interchangeably but have distinct meanings and implications for trading. Convergence refers to a situation where both the price of an asset and a technical indicator are moving in the same direction. For example, in a situation in which both the price of an asset and an indicator show an uptrend, there is a high probability that the trend will continue. So, here, the price and indicator CONVERGE (follow the same direction), and the trader may hesitate to trade in the opposite direction, as this is often seen as confirmation that the price movement is strong and likely to continue. Divergence refers to a situation where the price of an asset is moving in one direction while a technical indicator is moving in the opposite direction. For example, if we again consider the situation when the price of an asset shows an uptrend and, this time, the trend of a technical indicator is falling, there is a high probability of a trend reversal. So, here, the price and indicator DIVERGE (go in opposite directions). This is often seen as a warning sign that the price movement may not be sustainable and could soon reverse. To further understand the difference between convergence and divergence, let's look at some of the most commonly used technical indicators in trading: Relative Strength Index (RSI) RSI measures the strength of an asset by comparing the average gains and losses over a specified period of time. When the RSI value is above 70, it is considered overbought and is seen as likely to reverse soon. When the RSI value is below 30, it is considered oversold and is seen as likely to rebound. RSI Convergence RSI Divergence Moving Average Convergence Divergence (MACD) MACD measures the difference between two moving averages of an asset's price movements. Traders use the MACD to identify when bullish or bearish momentum is high. There is usually one short-term moving average and one long-term moving average. When the short-term moving average crosses above the long-term moving average, it is seen as a bullish signal, while a cross below the long-term moving average is seen as a bearish signal. MACD Convergence MACD Divergence Commodity Channel Index (CCI) CCI measures the difference between an asset's price change and its average price change. High positive readings indicate that the asset's price is above its average, which is seen as a bullish signal. Low negative readings indicate the asset's price is below its average, which is seen as a bearish signal. If the CCI value is above +100, this is seen as a signal of the start of an uptrend. If the CCI value is below -100, this is seen as a signal of the start of a downtrend. CCI Convergence CCI Divergence It is crucial to note that convergence and divergence are not guaranteed indicators of future price movements. Traders should use them in conjunction with other technical and fundamental analyses to aid their trading decisions. Traders should also be cautious of the fact that all indicators are lagging behind the current price action, and therefore they must be prepared to adjust their strategies accordingly. Trade safely and responsibly. BluetonaFX
Education
by BluetonaFX
4
SPX - Ascending Triangle (potentially bullish)A bearish divergence that appeared on 30th June had resulted in a short term and relatively shallow pullback (50% retracement of the mini AB swing) lasting several days. The uptrend has remained intact so far (and very much so). In fact it looks like an Ascending Triangle pattern could be forming. This is a continuation pattern (of a prior trend, which was "up"). Waiting to see if a breakup will materialise in the near term. However, should it break down instead (though with lesser odds), then current support is still around the 4300 region. Disclaimer: Just my 2 cents and not a trade advice. I like to keep my analysis simple as analysis paralysis is real especially for newbie traders! Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is (probably the most) important! Take care and Good Luck!
SP:SPXLong
by Juliac
Can AAOI continue a 400% trend up ?AAOI has trended up more than 450% since May 23th. The big question is can it continue? The factors include: 1 Volume - volume is what causes price action. Here rising volumes above the running mean suggest that there is plenty of volume support for price action. 2. Anchored VWAP analysis is that after a pullback in VWAP levels in mid June price has been rising and crossing VWAP levels above it. This is essentially a VWAP breakout. Price is increasingly overbought and overvalued and perhaps due for another correction. 3. RSI of both the lower and high time frames crossed 80 more than a week ago. Thus far RSI is stable without any sign of falling into bearish divergence. 4. The MACD lines are parallel and well above the histogram. They are at about the 9 level. Price reversed on June 20th into the pullback. This is when the lines were at 11.7. This reasonably suggests another pullback or correction when they rise again to 11.7 Given the above, I conclude that AAOI has upside room until divergence is seen or trading volumes change to net selling volume or price outright pivots down from a high. Accordingly, I will take a long trade expecting to capture the end of this massive trend up.
NASDAQ:AAOI
by AwesomeAvani
🔥 APE Double Bullish Divergence Signal: Big Reversal BetAPE is one of the weaker alts of the last two months. However, that doesn't mean that there's no money to be made. This signal is based on the idea that the bullish divergences will lead to bullish pressure in the near future. For this trade to activate we will wait for the price to close the daily candle above the most recent local high. Stop under the recent lows, target at the 2023 highs. If you trade more defensively, consider taking (partial) profits around 2.5 and 4.5
Long
by FieryTrading
7
Will Novavax NVAX go higher? SHORTNVAX popped today for a price jump of more than 20%. Canada agreed to pay out on a contract for COVID vaccines it now does not want in the amount of $350M. This is hardly enough to the fundamentals of the company overall. So the question arises, have traders and / or investors overreacted to a one time bonus which is essentially revenue without overhead and expense. My opinion is that this is an overreaction and that the price will drop after the pop hits a high. Buying long right now is essentially the risk of buying a high that will not go higher. On the Chris Moody dual RSI indicator, the longer one hour TM in black is over 75 while the shorter 5 minute TM in blue has peaked and dropped from 95 to 60. This is in essence bearish divergence. The other indicator, the mass index, shows the value arriving at the reversal zone where a drop to below 26.5 will be the trigger. Overall, for both fundamental and technical reasons, I will enter a short trade on NVAX expecting a correction / pullback from the pop the stock got after a one-time bonus of a payout for not producing unneeded vaccines.
NASDAQ:NVAXShort
by AwesomeAvani
1
PROCTOR & GAMBLE IS SOON TO SEE GOOD TIMES AHEADTECHNICALS - HIDDEN BULLISH DIVERGENCE - Procter & Gamble has formed a nice Positive Divergence or Hidden Bullish Divergence pattern on the Monthly chart indicating upside momentum on the chart STRONG SUPPORT LEVEL It has also Reversed Twice from a Strong Support zone which had earlier acted as Resistance level indicating further upside potential for the stock REVERSAL FROM 50D SMA It has also tested 50 Day Moving Average and has reversed from it nicely FUNDAMENTALS - NON-CYCLICAL STOCK - It is in the sector of Consumer Non-Durable Goods (healthcare & hygiene) which is an all-weather sector making the stock immune even to the upcoming recession (if it comes at all) EBITDA & NET PROFIT - Its EBITDA & Net Profit Margin growth stands at 24% & 17% which beats almost 90% of its peers and ROE is at 31% which is the industry standard DIVIDEND YIELD - If that's not enough then the stock also gives a dividend with yield at 2.72% and it has paid dividend for 133 years and raised dividend for 67 consecutive years, what could be a better alternative than such a stable dividend paying stock during the upcoming downturn in the market (if it comes)
NYSE:PGLong
by peace_lover
The Bullish Case for Bitcoin! A Comprehensive AnalysisIf price manage to break the falling Wedge . the price can easily reach the target after a little correction. 🌟 Bullish signals in the PRZ area are: - Support zone - Pivot yearly - Bullish Channel - falling Wegde - bollinger band - 5th Waves ⭐ and the bullish signals of market momentum are: - Regular divergence in MACD ➡️ Note if the PRZ is broken downwards with the strength of Bearish candles or Wedge broken from the bottom , this analysis of ours will be failed. ✅If this post was useful for you, like it ❤️ and if you think it is useful for your friends, be sure to send it to them. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 🌍Thank you for seeing idea . Have a nice day and Good luck.
COINBASE:BTCUSDLong
by CobraVanguard
34
USD/CHF many reasons to increaseHi every one U.S. DOLLAR / SWISS FRANC chart is speaking it self!! the USD/CHF has finished It's first five waves of Elliot wave principle movement (12345 Impulse wave) and now It must begin the ABC correction wave! there is also a falling wedge pattern which means that the price would increase and the price has already broken the pattern! the price now is making a pull back to the descending triangle (which is shown in the picture) if the price breaks that triangle we shall see a lot of increase in the price! and also there is a regular bullish divergence as well (+RD) which means the price would increase! Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad. Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!! Thank you for seeing idea . Have a nice day and Good luck
Long
by CobraVanguard
19
The Divergence Cheat Sheet: Your Quick Reference GuideHello dear @TradingView community! In this guide, we will delve into the concept of divergence and its significance in technical analysis, specifically focusing on its application in the cryptocurrency market, particularly Bitcoin. Understanding Divergence: A Key Concept in Trading Divergence occurs when the price of an asset and an indicator, such as the Relative Strength Index (RSI), move in opposite directions. This pattern provides valuable insights into potential price reversals or changes in trends. The Divergence Cheat Sheet To help us identify and interpret divergence patterns, a divergence cheat sheet can be an invaluable tool. It provides a concise overview of different divergence patterns and assists us in making timely and accurate decisions. By having a cheat sheet on hand, you can save time, reduce errors, and ensure they don't miss crucial signals in the fast-paced cryptocurrency market. Detecting Divergence Detecting divergence is crucial for identifying lucrative trading opportunities. By using divergence indicators like the RSI, MACD, or Stochastic Oscillator, we can gain significant insights into market trends and potential price reversals. To pinpoint divergence effectively, follow these steps: Choose an indicator capable of detecting divergence, such as the RSI, MACD, or Stochastic Oscillator. Look for discrepancies between the indicator and the price action. Regular divergence occurs when the price and the indicator move in opposite directions, while hidden divergence occurs when they move in the same direction but at different rates. Monitor the direction of the trend. Divergence can indicate a trend reversal, so keeping track of the current market trend is crucial. Confirm the divergence signal with other technical analysis tools. Divergence is just one piece of the puzzle, so it's essential to use other indicators to validate your trading decisions. Examples of Divergence in Trading Charts Let's examine a few examples of divergence on Bitcoin charts: Strong Bullish Divergence: When lows of the price decreases while the RSI increases, a regular bullish divergence occurs. This signals a potential trend reversal and presents an opportunity for a bullish trade. Strong Bearish Divergence: When highs the price of an asset is rising while the RSI is falling, it indicates a regular bearish divergence. This suggests a potential trend reversal and presents an opportunity for a bearish trade. Medium Bullish Divergence: When the lows of an asset remain equal while the RSI is rising, it indicates a medium bullish divergence. This suggests a potential increase in price, although it may not be a strong upward movement. Medium Bearish Divergence: When the highs of an asset remain unchanged while the RSI is decreasing, it indicates a medium bearish divergence. This suggests a potential decline in price, although the downward movement may not be significant. Weak Bullish Divergence: When the lows of an asset is decreasing while the RSI lows is equal, it indicates a weak bullish divergence. This suggests a potential increase in price, although it may not be a strong upward movement. Weak Bearish Divergence: When the highs of an asset are rising while the RSI remains unchanged, it indicates a moderate bearish divergence. This suggests a potential decline in price, although the downward movement may not be significant. Hidden Bullish Divergence: Hidden bullish divergence occurs when the price creates higher lows while the RSI is creating lower lows. This reinforces an existing uptrend and suggests its strength. Hidden Bearish Divergence: Hidden bearish divergence is observed when the price forms lower highs while the RSI forms higher highs. This indicates a potential weakening of the current uptrend and might signal a trend reversal or a pullback. By recognizing these divergence patterns on trading charts, we can gain insights into potential market reversals, entry and exit points, and adjust trading strategies accordingly. Incorporating Divergence into Your Trading Strategy To effectively incorporate divergence into your trading, consider the following steps: Identify the appropriate indicators: Choose reliable indicators such as RSI, MACD, or Stochastic Oscillator that can detect divergence patterns effectively. Learn to spot divergence: Familiarize yourself with the different types of divergence patterns and practice identifying them on price charts. This will help you develop a trained eye for spotting potential trading opportunities. Confirm with additional analysis: While divergence can provide valuable signals, it's essential to use other technical analysis tools to confirm your trading decisions. Look for supporting indicators, chart patterns, or trendline breaks that align with the divergence signal. Set clear entry and exit criteria: Define your entry and exit points based on the divergence signal and your risk tolerance. Consider using stop-loss orders and take-profit levels to manage your trades effectively. Practice risk management: Implement proper risk management techniques, such as position sizing, to protect your capital. Divergence alone should not be the sole basis for your trading decisions but rather an additional tool in your arsenal. Backtest and refine your strategy: Test your divergence-based trading strategy on historical price data to assess its effectiveness. Make adjustments as needed and continuously monitor and evaluate your results to improve your trading approach. Remember, divergence analysis is not foolproof and should be used in conjunction with other technical analysis methods and market factors. Regular practice, continuous learning, and adapting to changing market conditions are crucial for successful trading. Divergence analysis is a powerful tool that can provide us with an edge in the cryptocurrency market. By understanding and effectively utilizing divergence patterns, we can identify potential trend reversals, improve entry and exit timing, and enhance overall trading strategy. Incorporate divergence analysis into your trading approach and combine it with other technical indicators and risk management techniques for a well-rounded and informed trading strategy.
Education
by Vestinda
2
NDX - could be due for a bounce soonSo far, the pullback is still a correction within a larger uptrend, with strong support around 14185 - 14385 region. Potential bullish divergences have been forming between price and RSI on the daily chart which could cummulate to a short term bounce soon. However, any reversal from a divergence is usually accurate for short term (2-3 candles on the average) and does not predict a larger trend change. For a bigger picture trend, one will have to look at larger time frames (eg weekly and monthly). So far, the larger trend is still bullish for SPX and Nasdaq (for swing or position traders). That said, it is more important to look the technicals of individual stocks that we are looking to trade as the index is usually only representative of the "heavy weight" stocks. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
TVC:NDQ
by Juliac
🔥 OMG Bear Market Bottom: Bullish DivergenceOMG has seen a very bullish week after 3 months of selling. BTC saw a break out and OMG followed. This analysis assumes that OMG has bottomed and will not see new lows in the future. This idea is supported by the fact that OMG lost over 97.5% of it's ATH value and is currently seeing a bullish divergence led reversal. Target at the all-time highs, around 20. Stop under this week's low. A less risky approach would be to put the SL below the 2023 lows and to take partial profits around 2.50 and 6.
OLong
by FieryTrading
3