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Divergencetrading

GBPUSD Hourly Divergence Remain Open LongIn tandem with my previous swing trade trading idea in the link below, a check on the hourly divergence shows the short term reversal to bull remains very much in force. A short term long target to 1.32 levels still looks on the cards. For long positions, look to take profit around that level. Thereafter, going back to midterm swing trade, look to short this pair again according to my previous fibo trading idea. Happy trading and please click agree/like on this idea to support my work as well as follow my Tradingview profile to get more trade ideas update.
Long
by FiboTradeMasters
Trading Divergences - An Alternate View for New TradersTrading divergences is a very common technical analysis strategy, but it comes with one big problem: the most common divergences (not hidden) trade against the trend. This means that new traders can often get into trouble by constantly looking for, and trading, against a dominant trend. Here's an idea to help you become more profitable over the long-term: identify divergences on your chosen momentum indicator, but only trade on trend continuation signals. I'm not saying you need to do this forever, as once you're experienced you can trade both pullbacks and continuations - but doing so requires multiple layers of confirmation, and a lot of knowledge/planning/experience. By trading trend continuation signals after divergences, you're stacking the odds in your favour by going with the dominant trend. You're also training your eye to see divergences, and seeing how the markets react to divergences. For new traders this can be a valuable lesson in the power of momentum in financial markets. So, what are trend continuation signals? It depends on your chosen momentum indicator, so I can only provide general ideas; you need to adapt things according to what you're using. My chart contains a custom momentum indicator, loosely based on the RSI. However, it's far smoother than the RSI, so I can reliably trade precise signals (e.g. for me, a cross of 0). On the RSI, you may choose something a bit further down the scale, for example, a cross below Oversold (20/30). If you're using a Stochastic indicator, you may trade a cross below Overbought (70/80). If you don't understand why I'm suggesting you trade signals at the opposite end of the scale for RSI and Stochastic, let me know. Hopefully this all makes sense, and remember that it's just an idea if you're a new trader and struggling to make good trades. Let me know if you have any queries. DD
Education
by DreamsDefined
4
Bitcoin is TOP in ? (Looks like reversal is coming No. 2)Hello dear followers,traders and newcomers nor bulls and bears. In this TA I would like to show you mid/long term follow up of bear / bull divergences as well as share a opinion on current local top because of many factors and indicators You can see Bear divergence at the ATH (Indicators going down in overbought area & price going still up) Previously you could see bull div near very strong support (Indicators going up in oversold area & price still down) Now you can see bearish divergence forming in very high RSI range as well. WARNING !! This might not be exact top yet !! This parabola could lead to 10-11,5K !! But my thoughts are we are topping and we will head back to approx. 5K range to test that red line from ATH causing resistance if it can stay as support now in approx. 2months then sideways till November before going higher. ** This is not financial advice, so always trade on your own risk and do your own research first before putting your money in and risking them **
COINBASE:BTCUSDShort
by Anoinvest
3
Simple RSI analysis (Strong bearish divergence) Sell signal !!During one of my bottom calls I was pointing to Mar-May as area to watch for Bearish divergence to come and there you go How relative is the relative strenght index ? What is RSI ? If you do not know exactly then you´re at the right place ! I will reveal you the Mystery of sucesfull RSI divergence trading. Once you will master it you will make way more profitable trades / investments if you use them on mid-long term ( 4h/D/W/M charts) The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. Momentum is the rate of the rise or fall in price. The RSI computes momentum as the ratio of higher closes to lower closes Simple RSI indicator is very stong technical indicator if you know how to read it. The RSI provides signals that tell investors to buy when the security or currency is oversold and to sell when it is overbought Wilder further believed that divergence between RSI and price action is a very strong indication that a market turning point is imminent. Bearish divergence occurs when price makes a new high but the RSI makes a lower high, thus failing to confirm. Search for: Bullish / Bearish divergence & Hidden bearish / bullish divergence to incease the Risk:Return(Reward) ratio Feel free to ask in comments bellow and if you like my work hitting like would be appriciated Cheers Previous call - Bullish divergence ( Bottom ) ** Not a trading advice but attempt to predict future price movement so trade only on your own risk ** ** This is tutorial for trading bullish/bearish divergence to see more related ideas watch for links below **
BITFINEX:BTCUSDShort
by Anoinvest
1
EUR/USD - SHORTING OPPORTUNITYHey Traders, On the EUR/USD 4HR time frame we have a lower low lower close, since then price action rallied into resistance which was once support providing us with a double top, first test RSI was extremely overbought as I have my settings at 80/20, conventional is at 70/30. On the second test, we have bearish divergence. We can get involved in two ways: 1. Aggressive - Short now with stops above double top and take profit at structure lows. 2. Conservative - Use the 2618 strategy, wait for a break and close below the V of the double top, then enter at the 61.8 fib level again stops above the double top and take profits at structure levels ensuring minimum 1:1 R/R for target 1's.
Short
by shah-n
3
XVGBTC Verge signals weakness and may return into down trendHi all, Previously, I posted a bullish analysis on XVG where a regular bullish divergence could be seen on the 4hr and 1hr chart. Along with the descending wedge, I assumed a reversal would be possible, and reaching newer highs. I went long on the breakout, but soon realized that oscillators did not validate the price action. Although a bullish divergence was seen earlier, another divergence could be seen simultaneously. I am referring here to the hidden bearish divergence that is indicated with blue lines (lower highs on the price, higher highs on the oscillator). This divergence suggests that prices may resume to their original trend, which was a down trend for this situation. Seeing these two divergences in the same time frame make the reversal more doubtful I would say, however I haven't really backtested this yet. Should you know more about this, please do not hesitate to leave your comment if you can confirm this or reject. For me, divergences have put me into the right direction for the serious technical trades I've done so far. I am happy that I learned about this early on, as knowing this tool can save you a ton. For the reliability of these divergences, I can't really say they work all the time, but they are a comforting tool for confirming the price action. I will have to do many more trades to make this a more valid statement, but for now, I will put my trust into them. In conclusion, I think that further retracement and ultimately reaching the horizontal support around 325 is possible. For now, I have closed my long position and will wait what the market will do. There is still a tremendous opportunity for XVG to go up. I hope this was informative, and please let me know your thoughts! Maurits
X
by potadahead