Divergences for dummies!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!
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!
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 .
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.
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Divergences
The real value of gold is not this!!Gold is currently in a descending wedge and has completed its five upward waves, all indicating a bearish price trend. What further confirms this bearish outlook is the bearish divergence in the MACD. If the signal is followed, we will see a price drop. but Do current tensions in the Middle East allow for it ?
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⚠️Things can change...
The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Always learning new things as I check for my mistakes!Had a stoploss a very nice one, don't worry I followed my plan and just lost 1% of my account no big deal.
These past weeks, I have notice that every time that DXY is not aligned with EUR/USD price always goes contrary to manipulation. For example, in EU we can see that price manipulated a high, but DXY didn't meaning DXY is supported by an order block. Same happens when DXY manipulates a high or low and EU doesn't manipulate any high or low this means EU is supported by an order block.
In Conclusion this is called divergence and every time we see divergence we go contrary to manipulation.
Note: Here you are seeing the DXY chart inverted, this way you'll be able to find divergences easily.
How to REALLY Trade Divergences (One of My Favorite Entries)This tutorial might be short, but it is packed with potent information on how to REALLY trade divergences.
Divergences are one of the BEST ways to catch market reversals. However, from what I have seen, most people do not have a real process for determining when a divergence is actually confirmed/triggered, and then how to determine targets based on the divergence setup.
In other words, most people don't have a plan for trading divergence.
This video will give you a full plan (Setup/Trigger/Follow Through) for trading divergences.
I give full credit to Jake Bernstein, as this is a concept that I learned from him. He is one of the all time greats, and very worth your time to check out.
I hope you found this video insightful.
Have a great week.
EURUSD - Technical Analysis [Long Setup]EURUSD
The current trend is bearish but a bullish divergence exists on the RSI indicator. Also, double double-bottom bullish reversal pattern is formed. Let's wait for confirmation. If it breaks lower high then we are in a bullish trend.
Trade Plan
Entry Level = 1.10551
Stop Loss = 1.10302
TP1 = 1.108
TP2 = 1.1105
GOLD: Bearish: WOLFE Wave detected + DivergencesGOLD: Bearish: WOLFE Wave detected + Divergences
The Wolf of Zurich has detected a Wolfe Wave on the XAUUSD.
The price could reach 242 then 2291
In addition, there are two divergences with the price: The ROC Rate of Change and the RSI.
To watch the exponential moving averages 50 and 20, as well as the Fibonacci levels
We have reached the price of 2520 that I will indicate
The maximum can be 3000. So be careful!!
AUDNZD is ready to go LONGSo AUDNZD is definitely long for several reasons.
- Daily Bullish Divergence is clear
- Bullish Divergence Structure is broken to the upside
- Monthly Bullish Divergence is confirmed
- Price retraced to the Daily 200 EMA
- Daily Doji showed up on August 5
- Price formed Divergent resistance on the daily 61.8
- All AUD pairs are pushing up.
BLUR - 3D bullish divergence I will keep it simple for this one. There is a bullish divergence forming od D3 for BLUR, both on RSI and AO. The same divergence formed on CRV a few days ago, and CRV pumped 20% in a day shortly after, making it one of the best performers of the day/week.
The fact that both RSI and AO are forming the same divergence is a plus In addition they are forming on very high time frames, which is usually a good sign it just means it might take a bit longer to play out.
Entered at 0.157, which is also a big support level.
Target is range high at 0.22ish
Happy trading
GBPNZD - The Correction Is ImminentGBPNZD has shown an impressive rally in recent weeks.
Bearish divergences are now all too obvious, and retailer sentiment is also very bullish - a combination that warns bulls to be cautious.
We are trying to position ourselves in the market with a short and benefit from a very attractive RRR of around 2.6:1.
Shiba Underlying StrenghtA big Hidden Bullish Divergence spotted on the Daily Time frame, signaling a trend continuation.
Divergence on bigger time frame are important and significant, just have to find the Top or Bottom and in this case, I think Shib found the bottom of the divergence(Spot the textbook holding line). It has been a healthy Dip by the way.
On the MACD ..the bars will soon print green and also the blue line is about crossing signaling strength.
With the recent strength shown by BTC . might all Shiba needs to breakout.
A good 1:5 Risk to Reward Ratio..You dont see this everyday..
NB: Not a Financial Advice. DYOR
Happy Trading
LINK - EWT Ending Diagonal WaveBIST:LINK
Elliott's Wave - Ending Diagonal Wave w/Converging Lines
Price Action is currently printing a textbook Ending Diagonal Wave within a corrective 5th wave w/decreasing volume from $19
All while overextended into heavy support and nearing rising support with Bullish Divergences on RSI and OBV
What will you do with this information...?
Spot Bullish and Bearish Divergence PatternsHow to trade with Divergence? A condition where the price candles’ tops or bottoms point in a different direction from the corresponding tops or bottoms of the oscillator's signal line is called a divergence. Such divergence can be bullish or bearish.
In simple words, the price movement is opposite to the stochRSI,
Price lower lows, stochRSI higher lows = bullish divergence>go buy
Price higher highs, stochRSI lower highs = bearish divergence>go sell
LUX Industries revisitedIn lux industries it seems some buying is taking place as per chart. the price going down but the indicator is not agreeing to the price.
We may witness some pullback. I try to forecast the prices by looking at historical prices. And this is only a view.
This is not a recommendation at all. I am not a qualified technical analyst. please take the advise of your financial advisor before any action.
Regards
Bullish divergence in ETHBTC 📉📈❓🔍Here we are looking at the price indexed to 100.
🟢We have a descending rising wedge, with a bullish divergence: price falling, with the SMI (Stochastic Momentum Index) of the PVT (Price Volume Trend) rising.
🔴Could price revisit the 0.5 Fibo retracement in the final breather?
It could, but I think it's unlikely.
In any case, I traced this possibility using the white line.
🟢Furthermore, we have other divergences, if we consider the TOTALDEFI index: