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Divergences

btc going to drop box 12.6k - 9kthe hidden bearish divergence is a signal that there will be a downtrend continuation. daily negative divergence is a confirmation that uptrend is finished. price dropping below the 200ma of weekly is a sign price is moving towards the downside. a close below 23.3k the daily 200ma will confirm price will drop toward the previous low of 15.5k. most likely this 15.5k low will not hold and we will create a new lower low. a new lower low in price and a higher and high in oscillators, be it monthly chart, weekly chart and daily chart. this will give us a signal the start of real bullrun.. key level to note 23,3k 15.5k, 12.6k and 8.9k
BITSTAMP:BTCUSDShort
by Bro-of-Ced-Rich
7
Navigating the Golden Realm❣️"Unveiling Secrets of the Gold Market for Traders" Welcome to the captivating world of the gold market, where you as (new) trader embark on a metaphorical journey filled with price movements , trends , and profitable opportunities . In this comprehensive guide , i will delve into the intricacies of trading gold, empowered with knowledge that will enhance trading strategies. From deciphering patterns to understanding correlations , i will unlock the secrets of the golden realm, equiped with the confidence to make informed decisions. So fasten your seatbelts and get ready to navigate through the twists and turns of this enchanting market. Range Trading - The Breakfast Feast Picture yourself at a lavish breakfast buffet, where a wide array of options tempts your taste buds. Similarly, range trading in the gold market offers a delectable spread of trading opportunities. By identifying key support and resistance levels , you can effectively navigate within a defined price range. Just as you would choose from a buffet, traders can enter buy positions near support and sell positions near resistance. Deciphering Trends - The Path to Success In the golden realm, trends serve as beacons of guidance for traders. Analyzing price movements over time helps uncover valuable insights into the direction of the market. By identifying uptrends, downtrends, or sideways trends , strategies can be aligned accordingly. Utilizing tools like moving averages and trend lines, may create a clearer picture of the market's path, allowing you to ride the waves of success. Breakouts - Seizing the Golden Moments Just as a phoenix rises from the ashes, breakouts in the gold market signify the birth of new opportunities. Breakouts occur when the price breaches a significant resistance or support level, often indicating a shift in market sentiment. Trades will be positioned to take advantage of these golden moments by entering in the direction of the breakout. However, it is crucial to denote confluences and employ proper risk management techniques or wait for confirmation before diving into the fray. Correlations - Unveiling Hidden Connections The gold market is not an isolated realm; it is intricately connected to other financial markets. Understanding correlations between gold and other assets can provide valuable insights. For instance, a negative correlation with the U.S. dollar may indicate that a weaker dollar could lead to increased gold prices. By monitoring these relationships and recognizing their impact, you can make more informed decisions and maximize profit potential. Retesting - A Second Chance In the golden realm, opportunities often come knocking twice. Retesting occurs when a price level that was previously broken acts as a new support or resistance. Traders can capitalize on retests by entering positions in the direction of the original breakout. This phenomenon can provide a second chance to those who missed the initial move or wish to reinforce their existing positions. By identifying and evaluating retesting scenarios, you will enhance your trading strategy and seize these hidden but well-known opportunities. ☆ As we conclude this journey through the golden realm, you could now posses a deeper understanding of the gold market's intricacies. By embracing range trading , deciphering trends , seizing breakout moments , unraveling correlations , and recognizing retesting opportunities , you can navigate this enchanting market with confidence. Armed with technical indicators, pattern analysis, and an awareness of session transitions, you will unlock the potential for profitable opportunities. So, fellow aspiring traders, step into the foreign exchange golden realm armed with knowledge and embark on your path to success, b e ready to make informed decisions and claim your share of the golden treasures. HappyTrading 🤠 J
OANDA:XAUUSDEducation
by ATU_TAD
2
📊 3 Types Of DivergenceRSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and exaggerated divergences. 📍Regular Divergence: Regular divergence occurs when the price and the RSI indicator move in opposite directions. There are two types of regular divergences: bullish and bearish. 📍Hidden Divergence: Hidden divergence refers to a situation where the price and the RSI move in the same direction, but the RSI signals a potential trend continuation rather than a reversal. 📍Exaggerated Divergence: Exaggerated divergence is a type of divergence where the RSI signal extends beyond the typical overbought or oversold levels. It suggests that the price is showing extreme momentum and could potentially experience a significant reversal. In summary, regular, hidden, and exaggerated divergences in RSI analysis provide traders with valuable insights into potential trend reversals and continuations. By understanding these divergences, traders can make more informed decisions regarding their trading strategies and positions in the market. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
☆ The Relative Strenght Index (RSI) # on4 ! ☆The Relative Strength Index (RSI) - is a popular technical indicator used by traders to identify overbought and oversold conditions in the market. The RSI with a period of 4 is a shorter-term version that can provide more frequent signals. I use RSI 4 effectively following these steps: Understanding RSI Basics: The RSI measures the strength and speed of price movements. It oscillates between 0 and 100, with values above 89 indicating overbought conditions and values below 11 indicating oversold conditions. Identifying Overbought and Oversold Conditions: When the RSI 4 rises above 89, it suggests that the market may be overbought, indicating a potential reversal or a corrective pullback. When the RSI 4 falls below 11, it suggests that the market may be oversold, indicating a potential buying opportunity. Confirming Signals with Price Action: While RSI 4 can provide valuable insights, it is important to confirm its signals with other technical indicators or price action. Look for additional confirmation such as trendlines, support/resistance levels, or candlestick patterns to strengthen the validity of the RSI signals. Divergence Analysis: RSI 4 can also be used to identify bullish or bearish divergences. Bullish divergence occurs when price makes a lower low while RSI 4 makes a higher low, indicating potential upward momentum. Bearish divergence occurs when price makes a higher high while RSI 4 makes a lower high, suggesting potential downward pressure. Setting Stop Loss and Take Profit Levels: Determine appropriate stop-loss levels to protect your trades in case the market moves against you. Set take-profit levels based on your risk-reward ratio and the potential of the trade. Remember, RSI 4 is just one tool in your trading arsenal. It is essential to combine it with other technical indicators, chart patterns, and fundamental analysis for a comprehensive trading strategy. Regularly monitor the performance of RSI 4 in different market conditions and adjust your trading approach accordingly. Note: The use of any technical indicator, including RSI 4, does not guarantee successful trades. It is important to practice risk management, conduct thorough analysis, and make informed trading decisions based on a holistic view of the market. Always remember that no single indicator or strategy can predict market movements with 100% accuracy. Utilize RSI 4 as part of a well-rounded trading methodology, and continually refine your skills and knowledge through experience and ongoing education. HappyForexTrading ☆ J
OANDA:XAUUSDEducation
by ATU_TAD
📉 Stoch Markets: Is the worst really over? 🚀⁉️📝 I will try to analyze the market as a whole, with reference to the Russell 3000 index , which is broader than the S&P 500 . (Russell 3000 is a capitalization-weighted stock market index that seeks to be a benchmark of the entire U.S. stock market. It measures the performance of the 3,000 largest publicly held companies incorporated in America as measured by total market capitalization, and represents approximately 97% of the American public equity market). 📈 On the top chart we have the Russell 3000 . 📉 On the bottom chart, we have the Russell 2000 Growth divided by the Russell 2000 Value . (The Russell 2000 Index is a small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index). The intention here is to see how the companies classified in the 'Growth Investing' category are performing, using the 'Value Investing' companies as a parameter. 🤔 As a rule, it is to be expected that when traders and investors are more prone to risk, they invest more money in 'growth investing' companies than in 'value investing' companies. 1) Analyzing divergences 1.1) 2006-2008 In the period from 2006 to 2008 we had a divergence: the Russell 3000 had lower funds, while the Growth companies had higher funds. The apex was found precisely in the blue diagonal channel, on 12/30/2008. Note that Russell's bottom was only found on 03/10/2009, 3 months later. There is a clear anticipation in the contribution of 'Growth' companies. 1.2) 2014-2016 Russell tests the support of the green line several times, the last one being on 02/11/2016. Meanwhile, Growth companies remain on the rise, however reaching the blue diagonal channel again on 02/02/2017, 1 year later. In this case there was an outflow of 'Growth' companies, at least until reaching the blue diagonal channel. After that the increase continues. 1.3) 2018-2020 In this period we have a classic book divergence. The Russell peaks downwards on 21/12/2018, and later on 23/03/2020, featuring lower bottoms. Meanwhile, 'Growth' companies continue to 'respect' the green close with ever higher funds, reaching a low peak on the same date. 1.4) 2022-? Considering the bad macro-economic scenario, with the high cost of money and inflation, it would be surprising that the 'Growth' companies had a better performance than the 'Value' ones. Despite this pessimistic bias, if this indicator breaks above this green diagonal line and stays there, I will reconsider this opinion. If not, I think it is more likely that it will hit the blue diagonal channel again to form the final divergence. 🟢 For comparison purposes, considering a more global aspect and not just the small companies of the Russell 2000, the same analysis could be done on the ratio between the RAG and RAV indices (Russel 3000 Growth/Russel 3000 Value): 2006-2008 2014-2016 2018-2020 2022-? 🔵 What's important to note is that these key moments happened in December and March.
R
by andre_007
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_
📊 Divergence Cheat SheetDivergences, whether bullish or bearish in nature, have been classified according to their levels of strength. The strongest divergences are Class A divergences; exhibiting less strength are Class B divergences; and the weakest divergences are Class C. The best trading opportunities are indicated by Class A divergences, while Class B and C divergences represent choppy market action and should generally be ignored. 🔷 Class A bearish divergences occur when prices rise to a new high but the oscillator can only muster a high that is lower than exhibited on a previous rally. Class A bearish divergences often signal a sharp and significant reversal toward a downtrend. Class A bullish divergences occur when prices reach a new low but an oscillator reaches a higher bottom than it reached during its previous decline. Class A bullish divergences are often the best signals of an impending sharp rally. 🔷 Class B bearish divergences are illustrated by prices making a double top, with an oscillator tracing a lower second top. Class B bullish divergences occur when prices trace a double bottom, with an oscillator tracing a higher second bottom. 🔷 Class C bearish divergences occur when prices rise to a new high but an indicator stops at the very same level it reached during the previous rally. Class C bullish divergences occur when prices fall to a new low while the indicator traces a double bottom. Class C divergences are most indicative of market stagnation – bulls and bears are becoming neither stronger nor weaker. 👤 @algobuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
by QuantVue
9
LONG WINTERInvestor is back, so it´s Bears hibernation time. Guess what, my oldie bull divergence explanatory Bitcoin chart is still alive and ... I think that Bitcoin might be in the anomaly state where HIGH RSI doesnt mean a :poo: bear divergences are painted over higher time frames but yet its ignored and going higher and higher until a huge extended bear divergence smashes for a massive and fast correction and it can even continue growing higher. There is many reasons for this and if you will studdy the chart further and deeply then you might found the key in this work. Yet keep in mind, there is still chance to fail if the RED LINE resistance doesn´t get break threw in a short period of time. This short term chart might be a first confirmation for this theory Can history repeat itself ? Again & again ? Crypto TOTAL market cap to 10T ? s3.tradingview.com The time is NOW ---------------------------- BITCOIN HALVING (MAJOR EVENT) countdown at the time of writing 434days What is the Bitcoin Halving (Halvening)? New bitcoins are issued by the Bitcoin network every 10 minutes. For the first four years of Bitcoin's existence, the amount of new bitcoins issued every 10 minutes was 50. Every four years, this number is cut in half. The day the amount halves is called a "halving" or "halvening". In 2012, the amount of new bitcoins issued every 10 minutes dropped from 50 bitcoins to 25. In 2016, it dropped from 25 to 12.5. In the most recent May 11, 2020 halving, the reward dropped from 12.5 to 6.25 BTC per block. In the 2024 halving, the reward will drop from 6.25 BTC per block to 3.125 BTC. ---------------------------- R:R, money management, risk, reward, technique, style, trading, bitcoin , bitcointrading, profitable trading, profittrading, profit trading, secret, divergence, bull divergence, bear divergence, divergencetrading, divergence trading, trading strategy, how to trade bitcoin , bitcoin trades, bitcoin trading, make profit, take profit, trading strategy, trading technique, successful, successful trader, successful technique, successful strategy, successful secret, how to trade, trend analysis, technical analysis , indicators, rsi , relative strenght index, let it rain, successful life, easy strategy, easy trading, easy technique, make money, crypto investing, investing, crypto, cryptocurrency, cryptocurrencies, mentoring, money, chartart, beyond
COINBASE:BTCUSDLong
by Anoinvest
3
What Is the Best Divergence Trading Strategy? 👑 What Is Divergence? Divergence is a trading phenomenon that offers reliable and high-quality information regarding trading signals. It refers to when an asset’s price moves in the opposite direction to the momentum indicators or oscillators. Commonly used indicators include the relative strength index (RSI), stochastic oscillator, Awesome Oscillator (AO), and moving average convergence divergence (MACD). Divergence is one of the many concepts that experienced traders use to the time when to enter or exit the market. To say a divergence occurs is to say that the price and momentum are out of sync. This signals that the market is preparing for a trend reversal or pullback, but it does not necessarily guarantee trend directions. There are mainly two types of divergence: 1) Regular divergence is where the price signal creates higher highs or lower lows while the indicator makes lower highs or higher lows respectively. 2) Hidden divergence, which is the opposite of regular divergence, is where the indicator makes higher highs or lower lows while the price action creates lower highs or higher lows respectively. Regular Divergence vs. Hidden Divergence What Is Regular Divergence? Regular divergence can be divided into two types: regular bearish divergence and regular bullish divergence. What is Regular Bearish Divergence? Regular bearish divergence occurs when the price action makes successively higher highs while the indicator makes consecutively lower highs. This suggests that the asset’s price is preparing for a reversal into a downtrend. The indicator signal means that the momentum is changing. Even though the price action has made higher highs, the uptrend may be weak. In this scenario, traders should get ready to go short, i.e., to sell the asset and repurchase it later at a lower price. What is Regular Bullish Divergence? Regular bullish divergence happens when the price action forms progressively lower lows while the indicator creates higher lows. This implies that the prices will move in an upward trend soon. The indicator action implies that the price needs to catch up with the indicator signal and that the downtrend is weak. In this scenario, traders should get ready to go long, i.e., to buy the asset. How to Trade Regular Divergence? Divergence only tells traders that the momentum of a price movement is weakening. This does not necessarily lead to a strong reversal, and the price movement may just be entering a sideways trend (horizontal price movement within a stable range). To create a more reliable divergence trading strategy, skilled traders combine indicators with various tools. Regular bullish divergence and regular bearish divergence have different entry rules. In any case, once a trader has spotted a divergence, they should consider how to enter or exit the market and place their Stop Loss or Take Profit orders. What’s a hidden divergence? Divergences not only signal a potential trend reversal but can also be used as a possible sign for a trend continuation (price continues to move in its current direction). Hidden bullish divergence happens when the price is making a higher low (HL), but the oscillator is showing a lower low (LL). Hidden Bearish Divergence occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH). Keep in mind that regular divergences are possible signals for trend reversals while hidden divergences signal trend continuation. Regular divergences = signal possible trend reversal Hidden divergences = signal possible trend continuation Conclusion Trading divergence can be very profitable if traders can reliably identify divergence by making use of the trading tools in their arsenal. However, like all trading strategies, using divergence indicators involves a certain degree of risk. [
Education
by FOREXN1
24
How a possible tradeplan could look like #BTCHi @everyone, In this chart we explain how we could enter a trade if this scenario will occur. Its used for educational content (but based on a real plan) to show how to create a plan on a possible scenario. Always think a few steps ahead, its just like playing chess. Its not given that this scenario will play out but,,, : if this happen then we know how to anticipate. We should wait for conformation (divergence), if no divergence? Then wait till 2nd conformation, if we missed out? Then wait for 3th oppertunity to enter the position. Trading without having a plan, is like driving without hands on the wheel. It can go good for a while, but 100% for sure u will fail. Cheers, Team Quantistic
Short
by Quantistic
2
Thu 3rd November 2022 Daily Forex Charts : 5x New Trade SetupsGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified 5x new trade setups this morning. As usual, you can read my notes on the chart for my thoughts on these setups. The trades being a AUD/USD Sell, GBP/CHF Sell, GBP/USD Sell, USD/CAD Buy & USD/JPY Buy. A few of these are high risk and there is obviously some correlation here, so be aware of risk % per trade and overall risk. Enjoy the day all. Cheers. Jim
by JAGfx
10
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
Daily Real Estate ETF [DRV]: 1-Month Forecast Fundamental Perspective: In the past 50 days, the Direxion Daily Real Estate Bear 3X ETF (DRV) has experienced a surge of over 90%. As a leveraged ETF corresponding to the inverse of the Housing Market, this hardly comes as a surprise. In the past two weeks alone, the Federal Reserve raised benchmark interest rates by another 75 basis points in its ongoing struggle to curb inflation, and this has resulted in the mortgage interest rate increasing nearly 7%, adding even more pressure on potential homebuyers who are already struggling to navigate the historically high prices across the country. With 90% of mortgage holders having interest rates below 5%, not many are willing to part with a home, only to purchase a new one at an increased rate of 6.3%. Fueled mainly by this lack of supply, housing prices continue to rise in the short term, further amplifying the strain on the ever-growing housing bubble. Technical Perspective: From a technical standpoint, DRV is currently caught in a cross-current of two opposing channels, shown on the graph in yellow. The larger, ascending channel has been active for nearly a year, while the smaller, descending channel became active late last month when the price of DRV broke through the horizontal resistance of around $60. Examination using a custom, multi-timeframe WaveTrend indicator (coming soon) also indicates that a minor bearish divergence may playout in the second week of October, followed by a more significant bullish divergence that may push the price towards the upper portion of the ascending channel during the first few weeks of November. Note: The forecasted candles (shown in white) are based on lower timeframe fractals on the Heiken Ashi plot. They are intended to demonstrate one possibility of how price may interact with horizontal supports and channel boundaries in the coming month. The pivots in the projected price action have been retrofitted to be consistent with standard channel mechanics and Fibonacci spaced time intervals.
AMEX:DRVLong
by jdehorty