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Trendreversalpattern

How divergence plays an important role in trend reversals.This is my very first time I am writing any idea about how I read the charts. So my first idea is going to be on Divergence and how it plays an important role in trend reversal. First thing first, trend never stays in one direction forever. Sometimes it moves up and sometimes it moves down but how do we know that in anytime of near future we are expecting a reversal. In the pic below, we can clearly see that on AUDUSD trend is massively down from arrow area and everyone is looking to sell this pair. And every time when this down trend pullbacks we get a better price to sell (as if we are getting a higher price to sell) but think for a minute, when everyone is looking to sell and waiting for a pullback to happen so they can join the massive downtrend who will be the buyer? And how long we can sell a currency? Obviously, it can't remain in one direction (sell in this case) forever. Now in the next picture notice one thing when the price starts to fall down we see a LL and LH and we start selling this AUDUSD pair then another LL and LH and another sell then another LL and LH and another sell. Now we all now that we are making a LL and LH so when market is making LL and LH who will be interested in buying? NO ONE... After first 4 big pushes down, notice one thing all trend pushes seem to be weaker than they were initially and pullbacks are coming in deep. When momentum starts to fade out that will be the first sign that market may REVERSE in near future. A healthy trend always have momentum and health in it. If momentum starts to fade out and trend starts to loose its health what happens that those trend pushes starts to become smaller and weaker and pullback starts to come in deep. This is when Macd comes in handy. In the next pic, you will see after being in a downtrend for so long when you get the first sign of trend is now loosing its power (momentum and health) how you can use macd to confirm. This pic shows that when we were making LL and LH, on Macd we were also getting the same thing, but at the very right bottom of the pic we can see that we had LL and LH but on macd, story was totally different, we had HH and HL so this is the 2nd sign of possible trend reversal and this is time when Macd comes in handy on finding the reversal with divergence. So, in order to confirm we just have to go 1 time frame lower which is 4h in this case to see either we have a HH and HL on 1 smaller tf or not. We can see in above pic after ranging for quite long on 4h we finally had a HH and HL and then the buyers started to kick in. After divergence, buyers came in hot.
Education
by ajwadsaleem
XMRUSD possible scenario for thre next days/weeksBest case scenario: The price continues going down to make a double bottom, deeper down than the last low (Daily Chart) but not too much deeper. A bullish divergence appears on RSI. The bollinger bands are already constricting, showing that something big is coming, normally we don't know in which direction but look at the RSI oversold peak and compare to the other times when RSI was oversold. I'm expecting a reversal of the downtrend. I would enter long if the double bottom forms and the divergence appears. Please note that this is not intended as an investment advice. I post this basically for myself. I'm a beginner learning Technical Analysis. Thanks. If you disagree with anything I would be happy to read your comment and learn from you.
BITFINEX:XMRUSDLong
by DraNadita
1
BTCUSD TREND REVERSAL - WEEKLY MORNING STAR IN THE PRINTSDear all, the last time we printed a weekly morning star, BTC was in the 4K range last year after a selloff from 5K to 3K: When this was printed on the daily, we also saw a huge momentum swing to the upside after the selloff: Since then, we have never seen 4K again - price went up by about 350% to 20K before BTC sold off to 6K. A morning star is a bullish signal signalling the end of a downtrend: www.investopedia.com We are in the midst of printing another one - and how this plays out is highly dependent on how we close off this weekly candle. We have about 3 days to go. In conjunction with this, we have rebounded strongly with volume from the 76.4% fib level from the swing of 2K to 20K. Stochastic RSI is also crossing up. Each time it did, we have had strong rallies. I have no potential price targets for this setup, as what is currently seen is a gradual sentiment change of price discovery. Once these signals confirm and close for the week, we can anticipate another huge run up aiming for new highs. The trend is your friend. Cheers.
BITFINEX:BTCUSDLong
by Jeuvici
Iteksignal: Learning to use Reversal signalHow to Pick the Bottom in Any Market with Iteksignal A simple technique to buy the turn higher from the low with Iteksignal, is to wait for a failed double bottom. If you take a look at the image, prices fell to lower low with an extreme bottom (1). A subsequent candles bounce to a higher price (2) stalled and approached the bottom but did not break below that base. New higher lows (3) formed. 123bottom The buy trigger in the 1, 2, 3 formation is a push above the high (2) inside the double bottom. Buy when that peak is exceeded with a protective stop loss exit at the bottom (1). That make Iteksignal a valid entry
ALong
by iteksignal
Apple Inc. time for short sell?? Look at the chartTop companies like Facebook amazon Tesla Google etc. experienced very strong bullish movement for the last 10+ years. I think that this rare candle stick pattern on weekly chart is suggesting bearish movement. Two Black Gapping which according to the Bulkowski’s book it has probability of 68% that the market will follow the signal. When You will look at the chart it is very visible that the market has problems to go above this huge GAP. ON monthly chart we see very nice Bearish Engulfing pattern I see here good opportunity for short sell with probability of strong bearish move in the medium term. I think 100 is reasonable TP area.
NASDAQ:AAPLShort
by Krystiannwk