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Divergence

The easiest way to spot divergences and how to trade them Welcome to the coffee shop everybody. This is your host and baristo Eric, and in today's video I am giving you a video Lesson based off of my preferences on how you should look for and use RSI Divergences. THe Oscillator used in this video is The Heiken Ashi Algo Oscillator Get it free here and always BOOOOOOOOOOST IT!! There are three problems that people have whether they are experts or when they are novices in spotting Divergence between the RSI and price. First problem is they don't know where to look because the RS I can have hundreds of high values and hundreds of low values but you need to know which ones are the relevant ones to look at. The second problem is a common question where people ask "which way will the price go?" The answer to that is basically the slope of the RSI is the new slope of your price so, if the RSI is angled up your price will angle up. If the RSI is angled down your price will angle down. Now hold on a minute don't run off and start acting like you know how to trade divergences yet because there's still question number 3. When will it go in that direction? Just because you see a Divergence doesn't mean it's going to immediately happen so you need to know what to look for to let you know that it is actually going to go in that direction and when will that Trend begin. So in today's video I do a nice lengthy coverage on how to spot those answers and you can use the oscillator in the video by going to this link.
Education
by CoffeeshopCrypto
70
Bollinger and Wilder Charts Suggesting BottomThe Bollinger chart is on the left and the Wilder chart is on the right. The Bollinger chart shows bullish divergence between price and %B which is confirmed by AD%. See the yellow bars. AD% is a normalized accumulation/distribution indicator. Price has also created a double bottom and closed above the 20-day moving average, triggering a long entry. The Wilder chart shows bullish RSI divergence with a failure swing (higher low and higher high), as indicated by the yellow bars. ADX is threatening a crossover but has yet to achieve one. The parabolic SAR has triggered a long entry. The two lower indicators are not Wilder indicators, but both are showing bullish divergence. Note: a 50% retrace was accomplished last week. I went long two micros after the bell with a stop below the day’s low. I’ll consider closing the trade in part or in full near the 9-week moving average which is near the high from a couple weeks ago at 378.50. SPY closed at 371.13 today and is currently up after hours as of this writing at 8:27pm EST.
AMEX:SPYLong
by Skipper86
1
Sushi - Bearish Divergence 4HSushi has ben on the roll recently, with strong bullish pressure making its price reach its multi-month high. On the 4H time frame SUSHI is forming a bearish divergence with higher highs on the price and lower high on both MACD and RSI. RSI its losing momentum at the moment of the writing, while still sitting in overbought territory. I would open a short at these price, with target price at the demand zone at around $1.2. Remember that buying pressure is still very high as highlighted by the volume levels, thus play safely.
Short
by crypto_angelz
The art of trading- Spotting Divergences is a good way to be prepared for a potential trend reversal. - Many peoples are using RSI in a wrong way, as fix point indicator (oversold or overbought). - in reality RSI is a "Momentum indicator". Point to Point. - Divergences most of the time are not enough to enter a position but help you to have more nice cards in your hands. - They can be combined with Trend Lines, Supports/Resistances, pivots, MAs/EMAs and much more indicators. - More information you get on a trend, more is helpful to be accurate. - the reverse of the medal is using too many indicators at the same time can make you confuse and doubt. - Trading is an art but patience a virtue. Happy Tr4Ding !
COINBASE:BTCUSD
by thecryer
4
Using Zigzag to find patternsZigzag is my favourite technical indicator. Usage of zigzag is often misunderstood. People try to find tops and bottoms and complain that it repaints. Well, zigzag is supposed to repaint its last pivot and it should not be used finding tops and bottoms to enter and exit at the right time. Then, how do we use zigzags? Main application of zigzag for me is pattern recognition. Just put zigzag on your chart and observe how easy it will become to identify patterns. The chart below shows double bottom - confirmed by divergence on lower pivots and continuation on higher pivots (price, strength and volume are all making higher high). Having said that, we need to keep in mind the expectations of double bottom pattern and settle for appropriate risk reward.
Long
by Trendoscope
9
EURGBP - Possible Short term Buyprice reaches an order block/demand area and forms a QM pattern (higher high and lower low). if price reaches the left shoulder level (fib retracement of 0.718 and 0.886 - best levels for premium or discount ), it could reverse and go bullish . Divergence also occurs at 30M and 1H tf that backs up the bullish behavior. The overall trend is now bearish after it hits a resistance trendline on a weekly tf. So if in case it goes up then it is just short-term. This is just my analysis. I could be wrong of course.
Long
by Chad_Sniper
BTC Uptrend: Bullish div BTC Weekly, and Pullback to EMA on 1DThis setup is about a pullback to the Value zone on the daily, and the larger setup on the weekly: A bullish divergence. 1W: Bullish divergence on the weekly, but only on the MACD-H, so I rate it weak. It might look strong, but these are the facts: only a bullish div on MACD-H, not on any other indicator. Stochastic RSI is curling up from an oversold condition. I give this idea the benefit of the doubt and have a conservative target slightly below the Slow 22-EMA, where I will take off 66%. I'll let the remainder run with a traling stop. 1D: There is a ride the trend setup, in which the price is pulling back to the Value zone. I enter with only 50% now, because it's not clear if the pullback is forming a low, or if it will go lower. For the other 50% I'll wait for the daily close and look for the situation on the 4H at the end of the day. R/R: 1:1.6 e: 22500 s: 18750 tp: 29000
Long
by Tornado_Trading
DONT FOMO INTO LONGS JUST YETWe are all looking at the same chart and thinking the same thing. SPY COULD have a serious bounce on the 200ma with a POSSIBLE bullish divergence on MACD and RSI. Many have already begun to FOMO into a possible year end rally as we have been rallying hard the past few days. This year is also a midterm election year (midterm election years usually have a rally beginning election time into the middle of the following year). However, this years year end rally is still not confirmed and going bullish so early would be disrespectful to the insane bear market we are having. Expect a retest of the 200ma in the coming weeks with the price coming back down to ATLEAST between 265 to 260, if not lower. If it holds, there is a definite possibility we could be testing 400 at the end of the year to beginning of 2023. However, for this upcoming month I am expecting us to be range bound. There are so many big earnings with banks reporting in the third week and big tech reporting in the last week of the month. Expect for us to have a better direction beginning of November. Also, do not be surprised if we do not bounce at the 200ma. This bear market is no joke. If earnings are bad and we break down, be ready for a possible 320. Also note Credit Sussie CEO will deliver their turnaround strategy on OCT 27, aligning perfectly with with the end of big tech and bank earnings. How the market reacts to their strategy will also weigh into the direction the market will take to close the year. Till the breakout in either direction is confirmed, be smart and play the range that will form.
AMEX:SPY
by MoRafi