Get started

Divergences

BTC: Will the bullish divergence lead to higher prices?Weekly Chart: The bearish divergence with false breakouts around Nov 21st 2021 is still at play. Went down through support at 46k ish and testing 40k now. Stuff on weekly chart takes a while to fizzle out, especially a bearish divergence. But bottoms take less time to build than tops, so maybe this is it. It needs to be able to close above -1 ATR channel line soon, otherwise lower prices more likely. Daily Chart: Bullish divergences formed, by taking out 42333, and MACD and other indicators are less bearish . Not a high quality divergence, but still a bullish divergence , often the start of a trend change. If lower prices are in the near future, this bullish divergence should dissolve and not confirm a false breakdown of 42333. It is already limping, so it won't take much weakness for the likelihood of 42333 not being a false breakdown. Next support is 35k, in case 40k cannot hold. Trade safe!
COINBASE:BTCUSD
by TurboNik
BTC: Will the bullish divergence lead to higher prices?BTC Weekly Chart: The bearish divergence with false breakouts around Nov 21st 2021 is still at play. Went down through support at 46k ish and testing 40k now. Stuff on weekly chart takes a while to fizzle out, especially a bearish divergence. But bottoms take less time to build than tops, so maybe this is it... Daily Chart: Bullish divergences formed, by taking out 42333, and MACD and other indicators are less bearish. Not a high quality divergence, but still a bullish divergence, often the start of a trend change. If lower prices are in the near future, this bullish divergence should dissolve and not confirm a false breakdown of 42333. It is already limping, so it won't take much bearishness for the likelihood of 42333 not being a support. Next support is 35k, in case 40k cannot hold. Trade safe!
COINBASE:BTCUSD
by TurboNik
Bullish, but waiting for entryDOT appears to have formed a symmetrical triangle with BTC. The most recent 4-hour bullish divergence would've been the ideal place to enter a long, but now that we are retesting daily moving average resistance, I'm on the sidelines until I see another obvious entry. For long-term investors, we are still at an accumulation level so if you're looking for DOT exposure, this could be a good place to start averaging in. ----------------------------------------- I'd love to hear your thoughts, ideas and feedback. Feel free to comment and I'll try and get back to you quickly. If you appreciated this analysis, consider Liking or Following. Thanks!
Long
by mercury_rising
2
The easiest way to use divergences in your own Pine strategiesDetecting divergences in a Pine indicator / strategy is easy. You simply have to compare the pivot lows and the pivot highs on the price and the oscillator, and if you can identify a difference between the last & previous pivots made on the price and the oscillator, you have likely found a divergence. Using this theory, here is an example how you would detect a Regular Bearish divergence: While the theory of divergence detection is simple, more often than not, things go wrong (the divergence indicator used in the example below is TradingView's built-in Divergence Indicator ): Would you identify this as a divergence? If not, why not? Is it because the divergence line is slicing through the candles? Or because the line is slicing through the oscillator? Or something else? Wouldn't it be great if somehow you could filter out invalid divergences from code, such as this one? We at Whitebox Software were wondering about the same thing, and decided to find a solution to this problem. This is when we realised that while detecting divergences is easy, detecting valid divergences is hard... After several months in development, we are proud to present to you our divergence indicator called The Divergent . The Divergent is an advanced divergence indicator with over 2500 lines of Pine Script, exposing over 30 different configuration options, including 9 built-in oscillators, to allow you to tweak every aspect of divergence detection to perfection. For example, the Line of Sight™ filter in The Divergent would have easily filtered out this invalid divergence above. The Line of Sight™ filter will notice any interruption to the divergence line connecting the price or the oscillator, and will treat the divergence as invalid. This filter is one of many, which has been created to reduce the false positive detections to a minimum. (In later publications, we will discuss each and every filter in detail). Alright, so The Divergent knows how to detect accurate divergences, but how is it going to help you detect divergences in your own Pine strategy? The Divergent is not simply a divergence indicator - it can also emit divergence signals * which you can catch and process in your own strategy. You can think of The Divergent being a DaaS ( D ivergences a s a S ervice)! * Please note, that divergence signals is a Pro only feature. To use the signals, simply place The Divergent onto the same chart you have your strategy on, import "The Divergent Library" into your code, link your strategy to The Divergent using a "source" input, and act on the signals produced by The Divergent ! Here is a simple strategy which incorporates divergence signals produced by The Divergent in its entry condition. The strategy will only open a position, if the moving average cross is preceded by a regular bullish or bearish divergence (depending on the direction of the cross): //@version=5 strategy("My Strategy with divergences", overlay=true, margin_long=100, margin_short=100) import WhiteboxSoftware/TheDivergentLibrary/1 as tdl float divSignal = input.source(title = "The Divergent Link", defval = close) var bool tdlContext = tdl.init(divSignal, displayLinkStatus = true, debug = false) // `divergence` can be one of the following values: // na → No divergence was detected // 1 → Regular Bull // 2 → Regular Bull early // 3 → Hidden Bull // 4 → Hidden Bull early // 5 → Regular Bear // 6 → Regular Bear early // 7 → Hidden Bear // 8 → Hidden Bear early // // priceStart is the bar_index of the starting point of the divergence line drawn on price // priceEnd is the bar_index of the ending point of the divergence line drawn on price // // oscStart is the bar_index of the starting point of the divergence line drawn on oscillator // oscEnd is the bar_index of the ending point of the divergence line drawn on oscillator = tdl.processSignal(divSignal) bool regularBullSignalledRecently = ta.barssince(divergence == 1) < 10 bool regularBearSignalledRecently = ta.barssince(divergence == 5) < 10 float slowSma = ta_sma(close, 28) float fastSma = ta_sma(close, 14) longCondition = ta.crossover(fastSma, slowSma) and regularBullSignalledRecently if (barstate.isconfirmed and longCondition and strategy.position_size == 0)   strategy.entry("Enter Long", strategy.long)   strategy.exit("Exit Long", "Enter Long", limit = close * 1.04, stop = close * 0.98)   shortCondition = ta.crossunder(fastSma, slowSma) and regularBearSignalledRecently if (barstate.isconfirmed and shortCondition and strategy.position_size == 0)   strategy.entry("Enter Short", strategy.short)   strategy.exit("Exit Short", "Enter Short", limit = close * 0.96, stop = close * 1.02) plot(slowSma, color = color.white) plot(fastSma, color = color.orange) One important thing to note, is that TradingView limits the number of "source" inputs you can use in an indicator / strategy to 1, so the source input linking your strategy and The Divergent is the only source input you can have in your strategy. There is a work around this limitation though. Simply convert the other source inputs to have a string type, and use a dropdown to provide the various sources: string mySource = input.string("My source", defval = "close", options = ) float sourceValue = switch mySource   "close" => close   "open" => open   "high" => high   "low" => low   => na --- This is where we are going to wrap up this article. We hope you will find the signals produced by The Divergent a useful addition in your own strategies! For more info on the The Divergent (Free) and The Divergent (Pro) indicators please see the linked pages. If you have any questions, don't hesitate to reach out to us either via our website or via the comment section below. If you found value in this article please give it a thumbs up! Thank you!
Education
by WhiteboxSoftware
2
RSI: A simple method to trade trends and rangesI write this tiny article to share the basics or my use of ths RSI indicator, coupled to supports and resistances levels, as well as trend lines (or any indicator you want to use as SUP/RES (moving averages, vwap ...)) This use implies a bit of practice in spotting divergences, but let's be honest, many of them appear on previous supports or resistances, just look at these levels and you can be sure you'll find them if a reversal is about to occur.) The second specificity is the use of a moving average applied to the RSI (in my exmaple, a 50 periods EMA) I developped my own RSI+MovingAverage script, but I'm sure you can find similar scripts that have already been shared within the community, thats why I don't publish it for now. Anyway, feel free to ask if you're interested in my script, it's obviously free. Lets consider two different contexts: Trends (Bullish/Bearish) Ranges In trends , there are two things to take into consideration. Let's explain what we need to work on a bullish trend: - If the price is on an interesting level (moving average, trend line, support), you can try to long upon the RSI crosses its moving average, indicating the potential end of the current retracement (even better if a bullish divergence appears close to this price) - If the price gets close to a resistance, and moreover if a bearish divergence appears on the RSI, you can consider it as a good exit price, or wait for the next retracement in order to pyramide your trade (depending on your approach). In a bearish trend, you obviously need to do the exact opposite, wait for retracements (flags or other), and find bearish divergences OR sell when the RSI is clearly crossing down its moving average. Of course you can wait for the RSI crossing above/under its moving average to get another confirmation that the movement is starting. You can see a few examples on the following screen In ranges , it's even simpler. Once you found your support and resistance levels (it can be old levels that have already generated good reactions) all you need is to spot bearish divergences on the resistance, and bullish divergence on the support. I personally like to cut at least a part of my position when we reach 50% of the range, which can be often considered as a support/resistance. It's totally up to you to exit on this point or not, depending on your preferences (simple scalping, anticipations of a range breakout to make a new trend, lower timeframe trend following, etc...) Range example: Additional notes When you trade a divergence, try to always open your position when the RSI rebounds on the divergence line, and not after, remember that opportunities are everywhere, don't mind if you missed the last one, don't enter too late in a movement. Even if a range is a global horizontal movement, it's still composed of alternations of bullish and bearish movements between the same supports and resistances, therefore, you're of course able to trade it as trends on lower timeframes Don't forget to look at candles, which can also give you strong signals on important levels, on current or lower/higher timeframes. The price is always the key Of course, think about the DOW theory.
Education
by noop-noop
3
MILAN OSCILLATOR INDICATORThe most important signals are related to the divergence. A recap for divergence from previous lessons: DIVERGENCE AND HIDDEN DIVERGENCE Positive Divergence is bullish and occurs in a downtrend when the price action prints lower lows that are not confirmed by the oscillating indicator. Negative Divergence is bearish and occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator. Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase. Bearish Hidden Divergence occurs during a reaction in a downtrend when the oscillator makes a lower low while the price action does not as it is in a reaction or consolidation phase. Other Signals can be crossing 0 lines or confirmation of change of bars colour.
BITSTAMP:BTCUSDEducation
by apadanaforex
Is Bitcoin facing a potential correction in the short term?NOT FINANCIAL ADVICE Keeping things simple, studying $BTC vs MACD vs RSI, a divergence pops out clearly on the shortterm 4H charts. While these do not always indicate a top or a dip, it is a signal that it is usually potentially accompanies one. Also charted are the various levels of potentiall strong resistances that may deflate bitcoin’s current rally. These are based off the previous peaks preceeding selloffs, with the Major Resistance being bitcoin’s ATH. If we are to analyse the volume trend, we can see that there’s a slight upslope of interest in trading which may be indicate that this rally may not yet be over — that the Minor and Primary resistances may be just a breather for the Bulls to regain their strength back. In summary, I’d surmise that it’s still not too late to get on the $BTC train. Wait for the dip, accumulate, and prepare to take profits as and when signs of weakness are showing during rallies. I do feel that retesting of ATH is incoming, but I won’t be surprised if the corrections are coming sooner than later, in this journey. Again, not financial advice — just an educational tool.
BITSTAMP:BTCUSDShort
by googooboyy
BTCUSD - H4 - "DOJI" WARNING ...!Today we are going to look at the 4 hours chart. Currently catch in a sideways broad 47'500-50'000 trading range. Indeed, after having filled the triangle technical target @ 49'421, the BTC pushed still a little bit higher towards an intraday high so far @ 49'811, being unable, so far to break the psychological 50'000 important resistance level. In addition, last H4 candle, triggered on a closing basis, a "Doji" pattern which should be seen as a first warning signal for a potential trend reversal.(should be confirmed !) Moreover, RSI is showing successive bearish divergences ! Therefore, next H4 closing level should be watch at very carefully and will give more clues for the next move; in the meantime, as always, monitor price action on shorter time frames to get intermediate signal (s) (such as divergences) which will help you to act accordingly. A successful upside breakout of 50'000, would put the focus on the 51'000 (weekly downtrend resistance line) area ahead of 53'000 zone, former high of beginning of September. On the downside, looking at the daily picture, first significant support to look at is the top of the clouds (former resistance which becomes now the new support level), currently around the 48'000 level. If you like my analysis, please do not forget to support with a like and a follow. Thanks. Ironman8848
BITSTAMP:BTCUSD
by Ironman8848
LATE NIGHT REVIEWS: A Plethora of ChartsIn this video I just quickly go over all the charts we looked at in the stream today and a couple new ones. Main takeaway is the bullish divergences on the daily chart, the high timeframe channels, and wedges, and the fun rounded-top/scallop chart. Hope this was helpful, I just wanted to get these charts out without too many tangents or extra analysis that takes away from the charts observations. Tomorrow we will do a stream where we look at these again, make changes, and then toss a bunch of indicators around.
BITSTAMP:BTCUSD
by GR3ND3L