What is divergence?
Divergence is a method used in technical analysis when the direction of a technical indicator, usually some form of oscillator ‘diverges’ from the overall price trend. In other words, the indicator starts moving in the opposite direction to the price and the trading oscillator signals a possible trend reversal.
Once divergence appears, there...
Hey everyone! 👋
Last week, we explained some of the basics to know when it comes to understanding divergences in the markets. If you haven’t read that post, be sure to check it out here: 👇
In this post, we are going to examine bullish divergence further, along with a few exhibits. Please remember this is an educational post to help everyone better...
BPCL has been making consistently Higher Highs and Higher Lows and the Bottom Support Trend line is providing good support.
Now after making a Higher High on 9 June the price has been falling and it is near the support trend line at around 440.Now we have to see whether the Support holds and the trend changes. There is also a Bullish Divergence.
Keep a sharp lookout.
In the last thread, we discussed the basics of divergence. In this thread, we are going to learn about the positive divergence a.k.a Bullish divergence. I'll cover it in 3 parts:
1. What is bullish divergence?
2. Types of bullish divergence
3. Subtypes with illustrations
So, let's move ahead!
What is Bullish divergence?
A bullish divergence occurs when prices...
BASF chart shows Bullish Divergence on 1D and 4H. Price are currently at Support level so this kind of setup demands for a small bounce from here.
For Long term, More down side Possible.
