anaida_sultana

#VEDL: Swing Trading With Positive Divergence Strategy

Long
NSE:VEDL   VEDANTA LTD
On the hourly time-frame chart we can observe the positive divergence against the prices.

As the candles have broken out from the trend line it was a good entry confirmation.

Stop-loss will be the low of the swing.

First target level will be 291 levels.

Comments

That divergence line is wrong. The divergence trend line on the RSI needs to be drawn from the same price point itself and not after.
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@sandeepbalachandran The divergence line on the RSI is corresponding to the troughs of the prices.

I haven't drawn any trend line on RSI.

Trendline is drawn by connecting the peaks of the prices to mark the entry.
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sandeepbalachandran anaida_sultana
@anaida_sultana, Very tight divergence line then. Didn't know such divergences could exist. Was talking about the divergence line, not trend line.
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anaida_sultana sandeepbalachandran
@sandeepbalachandran, Thanks for the feedback!

Good luck 👋
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