BTC TREND IS BEARISH IN 1 HR TFBINANCE:BTCUSDT IN 1 HR TF BTC shows bearish trend but Bullish Divergence shows in RSI.
Divergencetrading
🔔 BTCUSDT - 1W 🔔In the weekly time frame, after hitting the resistance range, the price has shown a negative divergence, which probably will cause a correction in the coming days... maybe for the last time, the price ranges of 18000 to 19000 dollars let's see...
WOMAN , LIFE , FREEDOM
Trade Divergences with a 100% chance of winning
Welcome to the coffee shop everybody this is your host and baristo eric. By this time everybody knows how to see and plot divergences on your chart. The one thing that I fail to see in a lot of people is to give you a winning solution or strategy on how to trade divergences after you've found them. The answer is in your algo and how the RSI moves against its own pivot levels.
Now that may sound confusing to you but if I show it to you in a video it'll come to you very easily so in today's video I'm going to show you how to trade after a Divergence and where to take your profit.
📊 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 ❤️
USDJPY LONG PositionAfter Observing first Higher High and Higher Low (according to Dow theory). taking long position at 2% Risk Reward. Divergence is synced as well
Reversal Bearish Divergence on CADCHFSpotted this reversal bearish divergence on CADCHF in 1H timeframe. Price also is consolidating in my key area as shown. What do you think about my idea? Leave your comments below and follow me for more RSI Divergence trade set ups.
Sell: 0.68706
SL: 0.69118
TP: 0.67883
RR: 2R
"Simple doesn't mean not profitable"
Stay focused my friend.
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. [
When a divergence isn't a divergence and price winsA fellow trader here on Trading View needed some help with a trade he is taking.
Commonly when an RSI makes a new LOW and price makes an opposing HIGH this is called a "Bearish Divergence"
When this happens, its expected that price will follow and make new Lows or start moving down.
But what happens when price continues to move up?
Why would it go against the momentum of the all mighty RSI?
How is it possible that price can reject what the RSI wants to do?
Well the answer is VOLUME and who is in control of it. The Bulls or the Bears...and whomever is in control, will always win.
In this video you'll see something else to look out for when trading divergences so you can predicts which way price will breakout.
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 !
NZDUSD DIVERGENCE LONG OUTLOOKWe have a Divergence around a whole number 0.60000. Best opportunity is when we break the down trendline and trade above 0.61000. Trading a setup Long at the low is risk taken though its a good opportunity. Looks like the fast move down was atop hunting and inducing retail traders. "In the name of News". Happens in Fx Trading.
AUDUSD | Bearish DivergenceThis idea is a continuation of the previous idea, which is listed below,make sure you've seen it!
In this idea, bearish divergence are clearly seen in 1 hour time frame, of course this is our chance to take short, but there are conditions to ensure that this divergence is valid,there are two confirmations that you can choose or you can choose both
Option 1
The first option is the trend line, this is the most basic and simple confirmation, the way to use it is when the price has crossed the trend line, then that's when we can enter
Option 2
For the second option, this option was chosen because the area is a strong area, if the price manages to break through this strong area, then it is a good time for us to enter
How about combining the two options?
To combine the two, we need to wait for these two options to have been breached. the conclusion is that if only one option has been penetrated (while the other has not) then we have to wait for the other option to be penetrated by the price
Thank you for taking your time to read, it makes me more synergistic
Stay tune!
GBPUSD | Find The OpportunityMy prediction is that the price will move down to touch the gray area
*If the price does not touch the gray area, I will not take the risk, which means I will not enter the market
Stay Tune!
EURUSD REVERSAL - DOUBLE BOTTOM WITH DIVERGENCEPossible EURUSD reversal. Double Bottom with Divergence.
#US30 #US30Futures Ready to Short 15 jam yang lalu
Elliot Wave Technical Analysis: Elliot Wave recounting & update
Using of EW RSI DIVERGENCE TRADING STRATEGY Method to identify changes in downtrend & uptrend
CHART ANALYSIS
Direction still on heavy downtrend and slightly have a very strong “Bearish Hidden Divergence” Technical trend continue in the long “Minute wave” correction Zigzag Pattern and is expected to make a decrease to the 161% Fibo Extension level as a target over the next 1 weeks
Note: to be able to identify "Divergence" whether Bullish or Bearish , you need to draw or mark manually by finding the change /difference of the trend (Divergence line) between the direction of Price vs RSI Indicator 14 - (can be done in small or large Time frame ) -
EW Note: Elliott wave is not a technique but it is to identify the Direction whether it is Down or Up.
*Disclaimer: All Trading Plan Ideas are for the study & guide of the Author only,
*For the purpose of buying & selling shares please refer to the representative of "Remiser or Stock Expert Consultant".
*All purchases or sales or even losses on stock & others instrument transactions, are your own responsibility.
Friendly Reminder: Control emotions, Take care of capital & trade discipline
Start with Bismillah & Selawat before trading.
Thank you .
#BTCUSD Updated & Forecast Elliot Wave Technical Analysis: Elliot Wave recounting & update
Using of EW RSI DIVERGENCE TRADING STRATEGY Method to identify changes in downtrend & uptrend
CHART ANALYSIS
Direction still on heavy downtrend and slightly have a very strong “Bearish Hidden Divergence” Technical trend continue in the long “Primary wave” Double combo correction WXY Expanded Flat Pattern and is expected to make a decrease to the 50% Fibo Retracement level as a target over the next 2-4 weeks
Note: to be able to identify "Divergence" whether Bullish or Bearish, you need to draw or mark manually by finding the change /difference of the trend (Divergence line) between the direction of Price vs RSI Indicator 14 - (can be done in small or large Time frame ) -
EW Note: Elliott wave is not a technique but it is to identify the Direction whether it is Down or Up.
*Disclaimer: All Trading Plan Ideas are for the study & guide of the Author only,
*For the purpose of buying & selling shares please refer to the representative of "Remiser or Stock Expert Consultant".
*All purchases or sales or even losses on stock & others instrument transactions, are your own responsibility.
Friendly Reminder: Control emotions, Take care of capital & trade discipline
Start with Bismillah & Selawat before trading.
Thank you .
ADAUSDT | Wave Projection | Bullish Divergence Apex TrianglePrice action and chart pattern trading
> Wave Pattern: Apex Triangle breakout with bullish divergence in daily timeframe - possible major uptrend rebound.
> Entry @ Apex breakout - key resistance SMA50
> Target @ 4-wave - upside +40% and TP2 @ SMA200 +80%
> Stoploss @ 5-wave lowest position -15%
> Risk Reward Ratio: 3:1
Indicator: RSI strong bullish divergence signal
Always trade with affordable risk and respect your stoploss
How to Trade Bullish DivergenceAt some point in your trading career, you will hear the term "Divergence Trading". Divergence simply means when the price and indicator are telling the trader two different things. It can be an effective addition to your trading strategy, especially if already using indicators like RSI or MACD to find overbought and oversold levels but should not be replied on by itself and requires practice to get it right.
There are two types of Divergence you want to be familiar with: Regular bullish and bearish divergence and Hidden bullish and bearish divergence. In this educational tutorial, I will cover Bullish Divergence. You should note that the appearance of divergence doesn't happen 100% of the time, but when it does, you can use it for additional confluence (extra confirmation) for entering trades.
Bullish Divergence Overview:
A bullish divergence occurs when prices fall to a new low while an oscillator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend. Notice in this example of GBPCAD, the price was in a downtrend and eventually came to a low at 5494 and rejected the area. The price shows a decline, while the RSI shows the oscillator moving higher. This is an example of regular bullish divergence, as it signaled a potential trend reversal.
How to Draw Bullish Divergence
You want to draw lines on successive tops and bottoms. Connect the tops and bottoms only, and keep your eyes on the price. If you draw a line connecting two lows on price, you MUST draw a line connecting two lows on the indicator. They have to match! Divergence only exists if the SLOPE of the line connecting the indicator tops/bottoms DIFFERS from the SLOPE of the line connecting the price tops/bottoms.
Popular Indicators to Use When Identifying Divergence
You can use indicators such as RSI, MACD, CCI, or Stochastic to trade divergence. Your selection in one of these indicators will depend on personal preference. I personally prefer the RSI at a 7 period.
If you spot divergence but the price has already reversed and moved in one direction for some time, the divergence should be considered played out.
You missed the boat this time. All you can do now is wait for another swing high/low to form and start your divergence search over.
What is your favorite way to trade Divergence? Let me know in the comments!
Happy Trading! :) - Brian & Kenya, BK FOREX ACADEMY
GBPAUD short4hr time frame shows bearish rsi divergence at a resistance level. My only concern is how the 20 and 50ma are currently positioned. Could be a H&S forming at this level as well. Trade carefully and use proper RR. This is just my idea and not a signal.
Do not take divergence as a signal to enter a trade. Must have several other factors to add to the potential of the trade going your way. REMEMBER not entering a trade is a trade decision in itself.
NZDJPYPrice has been diverging on the 4hr Chart for a month !! Watching for bearish price action at the resistance level for a major sell off.
Solana bearish divergence + support retestlet's see how this retest goes
if the support is lost, we can consider placing a short order targeting the monthly support @76
let me know what you think about this analysis
How To Trade Divergence
Divergence simply means separation.. When two similar things things---get separated and start going different directions, you have to consider which direction to follow. That's exactly the concept of divergence. When trading, and you spot a divergence, you want to be sure to understand what they are trying to tell you. In this video, I explain the concept of divergences, how to trade them and what to do when you sight one. Be sure to like, follow and comment.
I want to see those div trades!
Hidden bearish divergence spotted on EURUSD, SELL OPPORTUNITYHello traders, welcome back to my divergence trading idea. Today, EURUSD form a Hidden Bearish Divergence on the H4 TF as price had made a Lower High (LH) while the RSI Indicator had made a Higher High indicating price can move further down as the price is in a downtrend. Also on the H4 TF, price rejected the recent high trendline around 1.11203 which could mean more sellers are coming in.
A trade entry can be made around 1.10285 with TP placed around 1.08461 and SL around 1.10863.
The RRR is 1:3.21 making it a good trade
Regular Bullish Divergence spotted on GBPUSD H4 and H1 TFHello traders. As market open again tomorrow, here is a trade idea on GBPUSD. on the H4 and H1, the price makes a lower low while the RSI indicator makes a higher low, forming a regular bullish divergence as seen on the chart.
Also a spinning top was formed on H4 TF which could indicate bears are exhausted.
Thus, we can make our entries around 1.32331 (or lower), how SL (from H4 TF) can be placed around 1.31858 and our TP (from H4 TF) can be placed around 1.34112. The RRR is 1:3.7, making it a profitable trade.
NOTE: This is not a financial advice
