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Hidden Bullish RSI Divergence

XRP Triangle likely to create Rising Channel or Rising WedgeGreetings! First things first a reminder on how chart formations nest, or develop over time and second will be a divergence primer. Lots of people have seen the symmetrical triangle developing on XRPUSD, which is great. The next step is to figure out what will form when the pattern breaks either to the upside or downside. This post is my upside senariocast, which is what I will be looking for at key moments. Final reminder: Triangles are the easiest formations to recognize but the worst to trade by themselves. They are prone to be inconsistent and underperform so they are best when paired with other structures, structures that are largely lacking right now. Price Action Senarios Performs the hight of the triangle taking us to the top of the channel. A strong move that will make a lot of people happy. Based on above: We form a rising wedge Doubletop and Drop (lol) which would most likely happen on a weak move up with the top occurring at the channel midline. I find this the least likely scenario at this point. Goes impulsively out of the triangle and right out the channel and continues a flagpole run. Not very helpful because their is not much of a flagpole. Bounces between the channel baseline and midline for an extended period of time, frustrating people looking for a massive pamp but reassuring those hoping to accumulate and expecting an even bigger move. Primer on Divergences Normal Divergence (Trend Reversal) Bearish: Higher highs on price action but lower highs on the indicator Bullish: Lower lows on price action but higher lows on the indicator Hidden (Trend Continuation) Bearish: Lower high on the price action and higher highs on the indicator Bullish: Higher low on the price action and a lower low on the indicator The arrows show all kindz of bullish divergence which suggest this triangle with break up with continuation. Something that confirms this bias is the fact that the price action is above both the 12 and 26 EMA (the MACD EMAs) as it hits resistance. If the price action had the EMAS as resistance at the trendline resistance this would be very bearish. But since we don't, it is bullish as the price can ride the EMAS out of the triangle. The MACD-Asprey version is one of the earlier forms of the MACD and it can give you earlier entries. The MACD centers more around zero so it can be evaluated compared to its histogram. In this scenario, with bullish divergence, the histogram is leading the charge to the zero level. When you start to see blank space between the histogram and MACD you have an early entry. The chart below shows the white space and how you can use hidden bullish divergence. This time it is paired up with the bollinger band and buying these can be a bit high risk for leverage traders if you in with a bad system or a great system with poor discipline. If you don't like scalping or short swing trades that wouldn't be a timeframe setup you would use. The bollinger bands stop you from getting to high on hopium and show you where you can take some profit. They are great entries for investors looking to get great prices on a project they believe in the long run. Another word for leverage traders.... I expect a grind against the bollinger band in our current instance and people should not be surprised by quick retests of the baseline or lower edge. The normie MACD has the same histogram as the Aspray version so you see the extract same divergence. What is important about the normal MACD is that it doesn't center around zero as much, so when you see the MACD crossing up bullishly across the signal line (which is still pending) you get an extraordinarily strong move for that timeframe. And finally, almost as an afterthought: the RSI also has the same hidden bullish divergence. Final Thoughts My recent and linked post on XRP show a pair of quick trades I have put on using a lot of stuff I have covered in this post. Should this chart formation break to the upside I hope to hold this trade closer to two or three weeks, not two or three days or even 12 hours. With enough confirmation I will be adding to my position when I see pullbacks and consolidations. And as I said, that is the hope, not a 100% commitment. There is also my long term post using fibchannels. I will definitely look for retracements and consolidation at these fib levels like the chart below forecasts (hopefully accurately).
KRAKEN:XRPUSDLong
by This_Guhy
4
Hidden Divergence in GoldGold is making higher highs and higher lows, while the RSI and MACD oscillators/histograms show lower lows and lower highs. This is a case of hidden divergence which is an indication of the trend continuing. People who are looking to short should consider this. I recommend traders to avoid shorting for now. For people who are longing, it should be good news. Expect Gold to reach 1862. Please give a thumbs up if you agree with the idea and if there are any questions, feel free to comment down below.
OANDA:XAUUSDLong
by AresFx
4
Maximum pain with an expanding ending diagonalBitcoin: Hidden Bullish divergence on the 12H RSI, confluent with trendline support of a potential expanding diagonal triangle to complete wave 1 of a larger 5th/C at around $13k. Expecting a SFP rejection from $13k and a short-term correction to follow with major support at $11.1k and confluence of major support between $10.2-10.3k where there is a strong weekly level and a 4H order block which I suspect will be tested. Should only be a wick to these levels with $10.5k holding on a higher TF close. 12H Hidden bullish divergence:
BITSTAMP:BTCUSDLong
by Piggy_Profit
1
BATBTC Trade Setup | Trend Reversal | Hidden Bullish Divergence Today's chart - BATBTC – Consolidating at key support; a successful re-test validates technical targets above. Points to consider: - Trend Reversal - 21 EMA visual guide - Hidden bullish divergence - Stochastics oversold - Low Volume BATBTC testing trend support after a strong bull move into daily resistance, price respecting support level will form a higher low on the chart, indicating a trend reversal and will allow for trend continuation. The 21 EMA will assist as a visual guide, price breaking and trading above the EMA is a confirmation of strong trend continuation. Although trading below 50, the RSI confirms a hidden bullish divergence: price has made a higher low whilst the RSI has made a lower low, indicating a strong market accumulation. This also allows for ample space before the oscillator reaches overbought conditions as price breaks bullish. Stochastics are also overextended, although they may remain there for some time, momentum has been stored to the upside. Volume has been tapering off, indicative of an influx being imminent, likely to coincide with a break in either direction. Overall, in my opinion, BATBTC needs to hold trend support and break above the 21 EMA to validate a conservative entry for a long trade to technical targets above. What are your thoughts? If you’ve read this far - thank you for following my work! And as always, Focus on you, and the money will too!
Long
by Kudiiee
Facebook Hidden Bullish Divergence|Range Resistance|Bull PennantEvening Traders, Today’s Analysis – Facebook – trading above range midpoint with a hidden bullish divergence , immediate target - range resistance. Points to consider, - Trend bull pennant - Range support respected - Range resistance target - RSI hidden bullish divergence - Stochastics above 50 Facebooks trend is forming a probable bull pennant above range mid-point; this is considered a true pennant ONLY when price breaks out north. The range support has been respected multiple times; breaking this will put bears in control of the trend. Facebooks immediate target is range resistance, a very key level, breaking above will initiate a Blue Sky Breakout. The RSI confirms a hidden bullish divergence ; price has made a higher low whilst the RSI has made a lower low. Both oscillators need to remain above 50 for continued strength in the market. Overall, in my opinion, range resistance is the current target, breaking the pennant north will validate the pattern and the target will then become more probable. Breaking the ATH will put Facebook in price discovery mode What are your thoughts? Please leave a like and comment, And remember, “Hope is bogus emotion that only costs you money.” – Jim Cramer
NASDAQ:METALong
by AzizKhanZamani
7