Ramblin' Raccoon: More Divergence Stuff (BTC)This was a "quick" video to go over some of the divergences I am seeing on the BTC 4 hour chart.
I also discuss an interesting idea in regards to the RSI input source and how it can effect the ability to spot divergences.
Basically, standard RSI input source is the close of a candle, so its potentially using the body rather than the wick for its data.
So I broke up the RSI into 3 parts to search for divergences.
Please feel free to correct anything that may seem off.
Thanks!
DISCLAIMER: There are a couple of times where I say "bearish" when I mean "bullish".
OOPS!
Divergences
Ramblin' Raccoon: Divergences Explained by a RaccoonThis video is my attempt at simplifying and clarifying how to identify and spot divergences.
THE MAIN TAKE AWAY:
Bearish divergences are spotted by using the peaks of price and oscillators.
Bullish divergences are spotted by using the valleys of price and oscillators.
Bullish Divergence is actually a convergence. (wedgey)
Bearish Divergence is a true divergence. (expandy)
Hidden Bullish Divergence is a convergence.(expandy)
Hidden Bearish Divergence is actually a convergence. (wedgey)
Bearish/Bullish Divergences are potential reversals.
Hidden Bearish/Bullish Divergences are potential continuations.
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"Look someone opened a huge short... Oh, he was too late."
KEY POINTS:
- Bears Are Tired: Multiple Bullish Divergences On RSI
- Bulls Are Still Energetic: Higher Highs on RSI
- Historic Invincible Support Hit
- Dumb Money Opens Shorts (At Support...)
- Smart Money Bought The Dip
- Psychologically Tempting Target: $40k
- Funding Rate Favors Longs
- Excellent RRR: 400%
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ENTRY: $32 000
STOP LOSS: Daily close below $29 900 and staying there for six hours
TARGET: $40 000
My possible next trade for Bitcoin!!!Bitcoin form a simetric triangle in H8 timeframe, but at the moment, we can't to buy Bitcoin, I hope to buy Bitcoin contract above of $37,700 USD.
s3.tradingview.com
Now, if you look the Daily timeframe, there's 2 indicator that show that Bitcoin it's preparing to continue to bullish movement soon. MACD show us good zone to buy, but not confirmed in the price action, for that, I decide to hope until Bitcoin break up the resistance at $37,700 USD. Meanwhile, in the RSI Bitcoin form a bullish diverngece making lower higher in the indicator and the price action maybe a lower low. That could be an indication that bulls are preparing to make a movement volatile soon!!!
At the moment, my idea it's neutral, but the chances could be bullish!!!
BTC Divergence On Multiple Time ScalesHey gang.
People are making mention of the Bearish Divergence on the 4 hour chart.
I'd just like to remind everyone that BTC is showing about as much Bullish Divergence as one could ask for on the 3 day chart and even moreso on the weekly.
This is on both oscillators.
We may retest the PCZ of this Bullish Cypher pattern in the coming day or two, but it wouldn't make a lot of sense for BTC to go much lower than that.
DISCLAIMER: I AM a professional financial advisor to the stars and this IS financial advice - put all your money into a paper bag and then set the bag on fire. You will become rich upon waking the very next morning. This is not a joke and could never be considered a joke in a court of law. THAT'S for SURE.
The Bitcoin Dominance could to explode this rally!!!Looking this Bitcoin Dominance, Bitcoin it's still bullish, now as we see, Bitcoin it's turn bullish and we could to see another bull rally extremely volatile or the next weeks to months for Bitcoin.
Ok, i we see the Daily timeframe, Bitcoin it's appear that form a strong support in the 60% of Bitcoin Dominance, that mean a good news for Bitcoin, becuase as we see this strong support, Bitcoin could to up toward the 72% of market dominance.
Now, this it's the 3 Daily chart, and we see that Bitcoin it's extremely bullish in the dominance, that mean that i you operate with altcoins, notice that:
Altcoins/Bitcoin = could to down, becuase as Bitcoin dominance make strenthten when you see or example: The relatonship ratio with Chainlink/Bitcoin, Ethereum/Bitcoin or Cardano/Bitcoin it's go to down becuase Bitcoin it's get more strenght to up. For that, we could to experiment that Bitcoin go to up against the altcoins. now, you can to sell altcoins but very careuly, not just analyze the Bitcoin dominance, analyze your altcoin/Bitcoin to know the relationship who it's more strong? Altcoin (like Ethereum, Cardano or Chainlink) or Bitcoin). But, don't worry, i you don't understand how to analyze altcoin/Bitcoin. I can to make this analyze for you and invest in this great opporutnity in this next altseason for Cardano, Chainlink, Ethereum or XRP, my top crytpcourrency that it's not BItcoin to get more Bitcoin usign their relationship. And also, i you see the MACD or RSI, both indicator are showing us a good news for Bitcoin.
And finally, the weekly chart it's extremely bullish, becuase we make support as I mark this trend line, and in four occasion we form a lower high, that could to explode the Bitcoin bull rally. For that, it'svery important i you invest in Bitcoin and altcoins, you will need to check out to become a crytpocurrency trader and like an expert to analyze it.
Guys, if you found out that this idea it's sound intersting for you, please comment below about your perspective and idea for the Bitcoin Dominance and share this analyze for other people know this information!!!
The DEFINITION of Divergences!Hi every one
So in this post we want to talk about a thing that If you've been following us you would've see a lot of it !
we wanna talk about Divergences! and how to use them to our advantage!
there 4 kind of divergences in total which we will describe one by one!
1-regular Bearish Divergence (-RD)
2-regular Bullish Divergence (+RD)
3-Hidden Bearish Divergence(-HD)
4-Hidden Bullish Divergence(+HD)
first let's talk about the effects of divergences and than get into each one. divergences are strong signals that will reassure us of the continuation of the trend or the ending of them! so let's get into each one!
note that the trend is pretty important in finding divergences! for finding regular divergences on a bullish trend we must look at the tops and in a bearish trend we must look at the bottoms. for Hidden divergences though we must look at the bottoms (in a bullish trend ) and tops (in a bearish trend)
so let's get into it!
1.regular bearish divergences (-RD): these divergences accrue when the tops are higher than each other(in a bullish trend),but on RSI or MACD indicators the tops are lower or in the same position next each other (in a bullish trend) in this situation we can be sure that the trend is about to change and start the bearish movement at least for a while!
these are examples which clearly show the effect of (-RD) on the trend of the market.
2-regular bullish Divergence (+RD) : this divergence is accrued when the trend is bearish (bottoms are lower than each other ) but on RSI or MACD indicators the Bottoms are higher or next to each other. in this situation we can come to a conclusion that the trend can't be bearish for ever and the trend must change!
this is an example for (+RD) which you can see It's effect on the market!
3-Hidden bearish Divergence(-HD):The tops are lower than each other ( in a bearish trend) but the tops on MACD or RSI indicator are higher or in the same position next to each other in this situation we can be sure that the trend can still be bearish .
this is an example for(-HD) :
4-Hidden Bullish Divergence(+HD): these divergences accrue when the bottoms of a bullish trend are higher than each other but on the MACD or RSI the bottoms are lower or in the same position next to each other in this situation we can be sure that the bullish trend can still continue!
this is a clear example of (+HD) and It's effectiveness!
We hope that you've learn something with this post .
Have a nice day and Good luck.
BTCUSD BTCUSDT Remember 2017 divergences CORRECTED IDEAJust a reminder we already had 3 small divergences within 1 bigger divergence back in 2017 cycle which took us from 5k down to 3k in just 2 weeks before starting the biggest bull market from 3k up to 18k
Current 2021 cycle may take us from 50k to 30k and then up to 180k or 240k. Who knows.
DYOR and take care
SNAP: might be time to snap back soon...quick idea:
SNAP has been on an amazing rally - however - I think the time has come for the fun to end. When looking for the most egregious examples of high valuation in the market might now, snap is definitely up there.
After counting waves several times I came to the conclusion that SNAP is like many other tickers on the market near in a fifth wave completion. It is also difficult to ignore the divergence on the MACD that has been building since late October (short term bear div on rsi as well). Divergence can go on for a long time but after five months, almost half a year, it's likely that a correction/significant retrace to previous support levels will happen.
There may be a pop after market open but my guess is a strong sell-off will begin this week.
This it's possible a correction toward the $900 USD!!! Good ideaAt the moment, Ethereum it's show a rejection of the price in H4 chart. So, we can to see a down movement toward the $1,106 USD. Now, in this point, this it's very important to know if Ethereum break down this support that could be psycological important to form any rejection or formation of this bullish channel. So for that, we would need to know this part of manipulation when we see first a bearish risign wedge and we could have a potentail formation of bullish channel into this bearish rising wedge that I show you for you. This it's a market secret that investor and traders use to identity possible potentail of formation. But in case that Ethreum doesn't break down the $1,106 USD and show any bullish or rejection candlestick, we could to see and prefer to find down possible bought at $1,106 USD approximately to then, we can to see a target profit at $`,400 USD again, that it's in case for bullish scenario, and that I show you using this arrow model.
In H8, MACD show highe lower in the MACD signal, usign htis blue and yellow line, that show that MACD are lossing boughts, that mean possibles overbought market in H8 timeframe. Bur for that, this model it's the same of H4 timeframe. To know, if Etherem going to break down the $1,106 USD, we could to see a next movement toward the $900 USD easily.
And then, this it's the Daily chart that I wanting to share you. We see a bearish divergence in the MACD that show higher lower, and also in the same time the price action that we have this big bearish candlestick that show a overbought market.
So guys, the possibility to see the $900 USD it's 75% of probability in front of 25% that $1,106 USD make support and then up.
So, I'm in the market right now from $1,234 USD hoping the confirmation of H4 timeframe candlestick. So, I am in short position with a SL at $1,329 USD and my target it's exactly at $910 USD.
📖 A Guide to RSI Divergences - By Trading-GuruIn this guide I will walk you through the three main different kind of divergences and explain to you how you can spot them.
I also show you the extreme power RSI divergences have by looking at BTC/USD and mark them on the chart. It's quite special to see all these three kinds immediately after another, and it's really nice to see them all working out here as well.
Obviously, no signal will not provide a 100% success guarantee. But this text-book example on the BTC price showing how they work out every time is great for both learning and profit taking.
It can be very hard to trade an asset that has seen such immense growth and nearly vertical upwards momentum. Using RSI divergences you will still be able to predict price reversals and trade successfully. So let's take a closer look at the three different forms of RSI divergences that I cover here on the chart.
Exaggerated Divergences
Exaggerated divergences are similar to regular divergences, but are considered weaker and less predictive variations. The term exaggerated refers to a circumstance where either the oscillator or price makes an equal high or low.
Regular bullish divergences and regular bearish divergences both have two exaggerated variations, so there are four exaggerated variations in total. In this case we look at a bullish version where the price is consolidating the but the RSI shows an increase in momentum.
Hidden Bullish Divergences
A Hidden Bullish Divergence is considered a continuation signal in an uptrend. It refers to a circumstance where an oscillator reading falls down below its previous low, while price is still higher than its previous low.
Hidden bullish divergences are most likely to occur in the middle of an uptrend – often after a healthy pull back – and indicate that the uptrend will most likely continue.
The starting point of a hidden bullish divergence should be a clear swing, not just a red candlestick.
Regular Bearish Divergence
A Regular Bearish Divergence is considered a strong reversal signal in an uptrend. It refers to a circumstance where price rises and makes a higher high, while the corresponding oscillator reading is still lower than its previous high.
Bearish divergences are most likely to occur in strong uptrends and signify that upward momentum is weakening. A reversal – or at least a pull back – is then expected to follow. Regular bearish divergences also appear in exaggerated form.
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
Atul Auto - A Great investment IdeaAtul Auto is a fundamentally a strong company with great investors on board.
Technically, the stock is showing positive divergences on the weekly time frames.
CMP is 192 and it seems it is already to touch 260 and 340 levels.
Any weekly closing above 340 levels will open the chances of it testing its all time highs
Infosys - All poised a decent correction ? Stay cautious I usually prefer a 3-hour time frame chart to understand the longer trend of the stock.
IT stocks have had a stellar rally since the March lows and it seems to me that the bulls are finally getting tired before they get active all over again.
Infosys the beast is showing some serious negative divergences on a 3-hour time frame. Additionally, the dollar index is also looking to bottom out in near time :)
Infosys can correct till 1020-1050 in near short time :)