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Divergence

Technical Analysis Part - 2The RSI provides immediate signals for buying and selling, helping you understand whether an asset is overbought or oversold. RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued. Volume can confirm divergence signals by indicating the strength and conviction behind price movements. High volume during divergence signals strengthens the reliability of the signal, while low volume may indicate weaker market sentiment.
NSE:BANKNIFTYEducation
by SkyTradingZone
Technical Analysis Part - 1An RSI divergence occurs when price moves in the opposite direction of the RSI. In other words, a chart might display a change in momentum before a corresponding change in price. A bullish divergence occurs when the RSI displays an oversold reading followed by a higher low that appears with lower lows in the price. The RSI provides immediate signals for buying and selling, helping you understand whether an asset is overbought or oversold. RSI readings below 30 signal buy opportunities, indicating the asset is undervalued. Conversely, RSI readings above 70 signal sell opportunities, suggesting the asset is overvalued.
NSE:HDFCBANKEducation
by SkyTradingZone
Technical Analysis Part - 4The MACD is a momentum indicator that can be used to anticipate changes in market sentiment. However, it is not foolproof: experienced traders look to other metrics, such as trading volume, for a more complete perspective on market sentiment. Key Takeaways The moving average convergence divergence (MACD) is a popular momentum indicator that is used in technical analysis. The MACD is calculated by comparing exponential moving averages in a security's price. The MACD line is charted alongside a nine-day moving average of the MACD line, called the signal line, and a histogram representing the difference between these two curves. Traders use the MACD histogram to anticipate changes in market momentum. MACD analysis can still generate false price predictions. Experienced traders use additional metrics and fundamental analysis to support their forecasts.
NSE:BANKNIFTYEducation
by SkyTradingZone
Silver DivergenceDivergence and Gold/Silver Ratio Gold and silver are thought to move together, and often they do. There are periods where the Gold Trust (GLD) and Silver Trust (SLV) move in opposite directions and periods where one metal outperforms the other. Gold is currently outperforming silver. Such discrepancies occur and are monitored by the gold/silver ratio. The gold/silver ratio shows how many ounces of silver it takes to buy an ounce of gold. Since 1975, the average is near 60; right now it stands near 80 ($1,187 divided by $14.99). While gold outperformance, or silver's underperformance relative to gold, was very noticeable in early 2016, this has actually been going on for a long time. The outperformance has become even more pronounced since 2016. To start 2016, gold traded at $1,069 and silver at $13.80 -- the gold/silver ratio of 77.5. As of Oct. 2018, it's at 80. Gold prices have risen relative to silver prices quite steadily for years. This is mainly due to silver price weakness since peaking near $50 in 2011 (when silver outperformed gold).
NSE:BANKNIFTYEducation
by SkyTradingZone
Advanced Rsi Divergence TradingRSI Divergence occurs when the Relative Strength Index indicator starts reversing before price does. A bearish divergence consists of an overbought RSI reading, followed by lower high on RSI. At the same time, price must make a higher high on the second peak, where the RSI is lower. If used correctly, RSI divergence can be profitable, providing early signals of trend reversals. However, it also carries risks, and traders should use it alongside other indicators and proper risk management strategies.
NSE:BANKNIFTYEducation
by SkyTradingZone
Technical Analysis MACD HIstogram Key Takeaways The moving average convergence divergence (MACD) is a popular momentum indicator that is used in technical analysis. The MACD is calculated by comparing exponential moving averages in a security's price. The MACD line is charted alongside a nine-day moving average of the MACD line, called the signal line, and a histogram representing the difference between these two curves. Traders use the MACD histogram to anticipate changes in market momentum. MACD analysis can still generate false price predictions. Experienced traders use additional metrics and fundamental analysis to support their forecasts. This example should demonstrate how observing the MACD histogram can help anticipate changes in trends in both short-term and long-term price momentum. It is important for traders to learn to recognize these trends and not bet against them. Fighting a trend is a sure way to get pummeled.
NSE:BANKNIFTYEducation
by SkyTradingZone
Banknifty Professional Trading Setup Here are some things to know about the MACD histogram and divergences: Divergence A divergence occurs when the price action and momentum are not acting together. For example, if the price is making lower highs, but the histogram is making higher lows, this is a divergence. Types of divergences There are two types of divergences: peak-trough and slant. Bullish divergence A bullish divergence occurs when the MACD forms two rising lows that correspond to two falling lows in the price. Bearish divergence A bearish divergence occurs when the MACD forms two falling highs that correspond to two rising highs in the price. Histogram bars The length of the histogram bars indicate the relationship between the two moving averages. When the moving averages are moving away from each other, the bars are longer, and when they are getting closer, the bars are shorter. MACD The MACD is a momentum indicator that shows the relationship between two moving averages of prices. It's calculated by taking the difference between a 26-day and 12-day exponential moving average.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
Banknifty , Crude oil and Copper Divergence Divergence is a technical analysis concept that occurs when the price of an asset and a technical indicator move in opposite directions. It's a sign that the price of an asset may be reversing, and it can help traders recognize and react to price changes. Here are some things to know about divergence: #Types of divergence There are two types of divergence: negative and positive. Negative divergence happens when the price of a security is rising, but an indicator is falling. Positive divergence happens when the price of a security is falling, but an indicator is rising. #When to use divergence Divergence can help traders make decisions like tightening stop-loss or taking a profit. #How to confirm reversals Divergence can occur over a long period of time, so traders can use other tools like trendlines and support and resistance levels to confirm reversals. #When to use convergence Convergence is when the price of an asset, indicator, or index moves in the same direction as a related asset, indicator, or index
NSE:BANKNIFTYEducation
by SkyTradingZone
3
Histogram(MACD) Divergence Trading Let us discuss the MACD indicator strategy and histogram. I know being a chartist you are familiar with this tool. Hence I hope this will be a revision for you. Assuming you already know this topic, you should know that MACD Histogram is derived from MACD. To me, it is the effect of MACD (cause), without which MACD Histogram would not have been born. I hope you can relate it to the previous paragraph. If not, no problem. Carry on reading. But before proceeding further I would request you to recapitulate MACD (moving average convergence divergence). Thanks for converging your thoughts with that of mine. I am glad. It will help me to explain this article without taking the additional burden. MACD Histogram Peak-Trough Divergence By now you must have understood how the histogram dances to the tunes of prices. If one looks at it closely then one can easily identify the divergences. You will notice that a peak and trough divergence is formed with two peaks or two troughs in the MACD Histogram. Usually, it can be segregated into two parts, i.e. bullish peak and trough divergence and bearish peak and trough divergence. Alright, I will explain you in short. Bullish Peak-Trough Divergence It is formed when MACD makes a lower low and on the contrary, MACD-Histogram makes a higher low. One thing you should keep in mind, i.e., well-defined troughs define the health of a bullish peak-trough divergence. bullish peak trough divergence Bearish Peak-Trough Divergence It is formed when MACD makes a higher high and on the contrary MACD Histogram makes a lower high. One thing you should keep in mind, i.e., well-defined peaks define the health of a bearish peak-trough divergence.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
ALKYLAMINE : Understanding RSI Positive Divergence - RSI Positive divergence occurs when the price is in a downtrend but the indicator starts to rise. - It is a condition where Price makes lower tops and lower bottoms whereas Indicators fail to do so. - They make higher tops and higher bottoms. These are usually reliable signs as they predict prices are going to reverse. From the above chart, you can see On 27-03-2023 Price was at 2166 and RSI was 23.21 One 26-04-2024 Price was at 1808 and RSI was 26.90 So price was making lower lows and RSI was making higher lows, which show RSI Positive Divergence, which a signal of Trend Reversal. Please do like the post if you learnt some this post
NSE:ALKYLAMINELong
by PowerOfTA
4
Advanced Divergence Trading"Welcome to SkyTradingZone " Hello Everyone 👋 Video Information - Hello , Everyone lets start the Journey of Advanced Divergence Trading In this video, we are going to look at divergence. What is divergence? Divergence is basically when the market is creating higher highs and higher lows, and the RSI is creating the opposite. (Divergence can happen in both downtrends and uptrends.) ---------------------------------------------------------------- Q What divergence does, it's basically telling you that the trend is weakening. This is in a downtrend, and the RSI, the divergence, is basically telling you that this downtrend is weakening and there could be a possible reversal soon. So normally when divergence is happening, you normally see The market creates basically a curve. ---------------------------------------------------------------- Structure is always key It doesn't matter the strategy you use, structure is always key. So what you want to see is that breaker structure to say that the trend is changing because structure changed. Note- Normal Tip From our side try to learn Liquidity and order block
NSE:BANKNIFTYEducation
by SkyTradingZone
2
NAVIN FLUORINE - Week - Bullish Divergence + Ascending TrendlineNAVIN FLUORINE INT. is displaying promising bullish signals on the weekly chart. The following analysis highlights key technical indicators and potential future movements: Ascending Trendline - The stock is maintaining a strong ascending trendline, bouncing off this support multiple times (green arrows). Bullish Divergence - The price made a lower low in March 2024, but quickly recovered. During the same period, RSI made a higher low, creating a bullish divergence (blue arrows). RSI Analysis - The RSI is currently trending upwards, indicating increasing bullish momentum. The stock is also moving in a clear Ascending Channel on the Monthly timeframe as shown above. Both the Top and Bottom of the channel has been tested multiple times over the years. If you found this analysis helpful, please leave a comment below to share your thoughts or any additional insights you might have. Your input is highly valued and helps us all learn together! Don't forget to Boost this idea if you believe in its potential. Follow me for more in-depth analyses! Disclaimer: This analysis is for educational purposes and should not be considered financial advice. Always conduct your own research before making any investment decisions.
NSE:NAVINFLUORLong
by gurinder1988
Gujarat Containers - Week - Breakout from Symmetrical Triangle?Analyzed the weekly chart of Gujarat Containers Ltd. (BSE: 523108), which is showing a promising breakout from a symmetrical triangle pattern. As you can see, the price has broken out of the Trendline recently and has performed a retest as well. Bullish Divergence on Daily: Recently a Divergence was also observed on the Daily Chart where the Price made a Lower Low while the RSI made a Higher Low. The RSI has been on an upward trajectory since. This setup looks quite promising for a continued upward move. What do you guys think? Disclaimer: This analysis is for educational purposes and should not be considered financial advice. Always conduct your own research before making any investment decisions.
BSE:GUJCONTLong
by gurinder1988
Island Top - Reversal Pattern, Rsi DivergenceIsland Reversal,  A significant gap up, or sharply higher price at the open, follows an upward price trend, then reverses to a bearish price trend.  Rsi divergence implies a change in relative strength as compared to price movement.  The price has come out of the regression channel. Probably we are in the 4th wave, which means we have completed the top of the 3rd impulse wave. This would be confirmed if it closed below 21550 in the coming weeks. 
NSE:NIFTY1!
by OK_Rane