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Divergence

SPX - Just more sidewaysA couple days ago I suggested that SPX was going to just expand below the uptrend line and above the downtrend line. My expectations are continuing to flow accordingly. The only thing that has me skeptical at this point is how oversold the 4h green wave is. But tae a look at the red, white and yellow wave. They're all curling down. The next rebound in that green wave is going to decide the next few weeks, in my opinion. Still not focusing on EWT but more on the chart formation, the momentum indicator is oversold and the green wave on the wave master is oversold. If we continue moving sideways and even if we start expanding even a little bit like I have forecasted, it'll allow the green wave to reset a bit and get up into overbought and then we could see a bigger move down instead of up. Yes, I know my main projection has this moving up, but if that green wave resets and the red/white/yellow waves are still overbought like they are now, we will almost certainly see an expansion type move to the downside. Not going to get into options premiums and decay but more than likely anybody holding further dated options are going to watch their money slowly disappear as the price action continues to chop for the next few weeks. Trade carefully and equity is king right now (both long and short style). You may be interested in bear ETFs for things like AAPL and TSLA. Careful with TSLA, though. She's a wildcard but I do believe if the market is going to expand down that AAPL has the best R/R.
SP:SPX
by bitdoctor
ES1!: RALLIES & FALLS / UPDATE / POINT OF CONTROL: 4000 & 3950DESCRIPTION: In the chart above I have provided a MACRO analysis of ES1! a future INDEX on the daily timeframe. POINTS: 1. Deviation of 250 points would justify placement of SUPPLY & DEMAND POCKETS. 2. Pennant Formation 3. Current CORRECTION FALL is roughly 5.55% falling short by nearly 5% when compared to other CORRECTION PHASES. RSI: Since the inception of the current bear market price action has only held one time when RSI is at a PIVOT POINT and ready to enter OVERSOLD TERRITORY. MACD: If MACD is pulled into OVERSOLD territory or anywhere past it's MEDIAN OF 0.00. This will be a strong indicator that price action will fail to hold onto its current channel of 4050 - 3800. And would essentially mean price action will retest past channel of 3800 - 3550. POINT OF CONTROL: Price action must remain above LEVEL 1 SUPPORT of 4000 & LEVEL 2 SUPPORT of 3950. SCENARIO #1: In a BULLISH scenario we would come to see price action bounce at 3950 then followed by a move toward 4150 before breaking pennant formation. (Not the safest bet since this scenario would VIOLATE RSI'S TREND FROM THE PAST YEAR) SCENARIO #2: In a BEARISH scenario we come to see a break below 3950 that would leave to PRICE ACTION not seeing support until 3800. (This would fall in line with what current indicators are signaling) FULL CHART LINK: www.tradingview.com CME_MINI:ES1!
CME_MINI:ES1!Short
by DGSTBROKERACC
USDCHFThis situation has been examined in different dimensions: 1- Strong supply and demand levels that I identify with my own indicator and system. 2- The structure of recently formed waves 3- Current market momentum 4- The structure of classical and price patterns In this idea, I identified the direction of the market in different ways and in the second step, I analyzed the potential of continuation or reversal. Usually, paying attention to the trend and strength of the trend can greatly increase the accuracy of the analysis. In general, I tried to describe the continuation of the movement in the simplest possible way in the diagram. ⚠️ Disclaimer: This is a personal opinion and you are responsible for any trading decisions. if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad ❤️️
Short
by HamidRamezani1992
Does divergence work?Candlesticks indicate the lack of sufficient strength for growth, therefore, according to the strength of the fall and the lower support area, and of course, the divergence, the probability of returning from that area is more likely. If the line is broken, we can imagine the upward growth trend up to the specified limits ⚠️ This Analysis will be updated ... 👤 Banipal : @hosseinbakrani 📅 02.14.2023 ⚠️(DYOR) ❤️ If you apperciate my work , Please like and comment , It Keeps me motivated to do better ❤️
by hosseinbakrani
META - falling wedge pattern (bullish)After a strong 28% gap post earnings on 2nd Feb, META has now given up about half its post-gap gain. However, its longer term bullish picture remains intact if we look at the following factors: 1. Stock is still trading above both its 20 and 200 day moving average (the latter of which is beginning to flatten out, a precursor to turning up) 2. A falling wedge pattern is forming (potentially bullish) 3. Bullish divergence forming between price and RSI (*see Note below) A break out of this wedge could be an opportunity to long again if one has taken profit earlier or has gotten stopped out as stock went into this steep retracement. I would put initial stop loss slightly below the most recent pivot low (which will be the candle just prior to the wedge breakout). However bear in the mind the stock's momentum could be slower for now until the next catalyst appear. *Note that while a bullish divergence could materialize into a short term bounce lasting about 2 to 3 candles, it does not translate into a longer term trend change on it's own. 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!
NASDAQ:META
by Juliac
Bearish Divergence on Daily BTC Chart and SMA200/W ResistanceIf we look at the current situation, we are faced with an unexpected rise in the BTC table, considering both the USA inflation data, the global markets and the US Dollar Index. We've come to the resistance zone of an already rising channel, as if that wasn't enough, there is a weekly period death cross presence. In addition, there was a serious negative mismatch between the price and the relative strength index in the daily timeframe. Considering these data, it would not be surprising if the price tries the channel subband $18.5K from this point.
Short
by the6ylal
BITCOIN showing some Bullish Divergence on the 3 HRBTC holding above $21500 (On the Edge! Just had a wik down to $21455!), looks to be some Bullish Divergence... It shows Divergence all the way up to about the 12 HR (Tiny one) and the daily (Micro one) LOL! Looking for a move tomorrow with the Inflation numbers. Can we get some Valentines Day love to the upside? We'll see... <--- Lots of Negative talk all over News & social so it may start making a move in the opposite direction. This is what happens when there is too much Hype for one direction IMO. Good Luck Out There!
by BuddaCo_LifeStyle
SPX - Just a "correction" so farThe correction in the markets last week may appear steep & violent, especially for some stocks. However, on the bigger scale of things, SPX is still looking like a "normal" correction (within a bull trend) so far. In fact, a few factors could be aligning for a possible bounce in the near term: 1.SPX closed a "dragon-fly" candlestick last Friday, signifying some buying towards the close of the session 2.A bullish divergence between price and RSI could be emerging 3.So far, the magnitude of the current retracement (CD) is similar to that of the previous retracement (AB), ie CD swing is the 100% fibonacci extension of AB, projected from point C. 4. The pullback to D is 50% fib retracement of the BC upswing (still within reasonable limits of a "correction") There is no real reason "panic" yet, unless we have SPX going below 4000 (worst case 3950) again for a start. Let's see how this week will play out. 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!
CME_MINI:ES1!
by Juliac
Trading Divergence Divergence is one of the well-known and widely used methods for determining price reversal areas, whether positive or negative and thus helps to determine entry or exit areas 📉📈 Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction. There is positive and negative divergence. Positive divergence indicates a move higher in the price of the asset is possible. Negative divergence signals that a move lower in the asset is possible. Divergence is one of the many trading methods that we use to build an integrated strategy, and of course, we can use it in any time frame we want ✍️
BITSTAMP:BTCUSDEducation
by Mr_HaMza_
It's AAVE---Long IDEAHello everyone; This Idea is for AAVE/USDT, spot pair, BUT It's Tradable on AAVE's Laveraged token as well . So Aave has multi divergences at various Time frames, BuT we are Looking at ones on D and W charts, I Marked Them with brush, They are visible on RSI,AwsomeOS and... We are Also at 50% FIB Support, And of course a Giant BAT Pattern which is pretty much complete! -So You can open your orders NOW or after confirmation on spot or ETF . I Marked The First and second Targets on it,it may go Higher But .. GOOD LUCK!
Long
by Paarham
2
Preference for EMA`s over standard MA`s.Hi. Another comment on signal compatibility. In EMA crossing a true death cross should be considered the crossing of EMA100/EMA200. This is usually always dangerous. Since the model situation I want to discuss is now occurring on the daily DXY, let us take it. 1. So there is a fresh death cross printed on January 6. 2. There is no crossing of EMA100/EMA200 now. 3. The candles came out from under diagonal resistance (what about the fact that the rate hike was already built into the conditions by the market?! lol). But how do I know if the momentum is depleted? The index has no volume... With volatility outlook. 4. SQZMOM_LB shows a daily divergence and a squeeze entry before jumping up. Further rise in DXY will be supported by expansion momentum. 5. So I have some confusion about the death cross indication and its possible consequences... If there is no support in the form of right away falling volatility for example... That is why I am looking at other crosses. 6. It turns out that if I short DXY anyway more important indication would be EMA20 and EMA 50 (red and orange). Since the move should be taken as early as possible and not wait for "iron" confirmations. But it turns out that MA cross is too late for a short, and not convincing enough for a continuation of the short at the moment when the cross finally happened... 7. In this case I think we're in for a ~108 level attack, which will prevent a cross at EMA100/200.
TVC:DXY
by averkie_skila
6
GBPUSD forming a double top before the expected default of U.SHey everyone, Default on debt of the US concerns because we're amid political tensions in the congress and the maturity date is approaching. Recap : Democrats want to rise the debt ceiling VS Republicans want to lower the expenses. The failure to reach an agreement before maturity date may provocate a shock wave on the market. As we all know, the dollar tend to rise in value when in time of uncertainty. on a purely technical point of view, we can observe that the second peak of the doble top is formed. As the 1.24 level was strongly rejected again and price action analysis provide us the confirmation that trend is reversing : inside bar pattern breaking down. So the bulls may have lost power over the market from here, and we should see the bearish momentum increasing. This scenario is confirmed by the MACD indicator as well, which formed a bearish divergence. Hence a bearish scenario on GBPUSD is expected within the next days and an optimal entry point will be here. I expect the price to fall sharply to 1.18 level breaking the neckline and causing panic over the market which will trigger a massive bearish sentiment that will lead the price to reach the target of 1.11000 . Give a thumbs up if you agree ! Good luck ! have a nice week
Short
by Thomas_Zito