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Divergence

Oscillate The Right Way: RevisitedFor all the basic stuff that I am using in this post, you will have to visit the following idea. This post is in continuation of SBI weekly divergence study.. Abbv. used: Overbought -- OB Oversold -- OS Divergence -- Div A-- OB B-- Div after OB at A C-- Double top and Div Multi week correction back to support D-- OS at support and very sharp rally due to news E-- OB in the same news candle Multiweek correction back to support F-- OS and Div at support Multiweek rally to previous highs G-- OB H-- Div Price still rallied and made new highs Later a very sharp fall back to support I-- OS J-- Div at support Price rallied sharply to the high of point E K-- OB L-- Div At L we have similar condition as we had at E. These conditions may pull the price back to the high of E at around 350 to find some support. Some observations: # Div not always lead to an immediate fall. Once it is OB/OS conditions, one may have to look for div trades on lower timeframes like daily. # One should not force trades and let the price take its course of action and reveal hands (eg at H) # Price action at lower timeframes should be given equal importance. # Div after OB/OS conditions works great. # Sharp rallies which take old highs in just one or two weeks plus OB conditions means caution. Same is true for sharp falls. # Div trades look very simple in the hindsight but as per my experience they are not that easy to trade in the live market. I hope this will add to your knowledge. Regards JJSingh
NSE:SBIN
by Bravetotrade
4
Mentorship InstaView: Channel Border Protected … so far Nifty View: The range of resistance within (15,200-15,300) proves itself in today’s session. Benchmark Nifty with many sectoral indices did slip ⛷quite a bit from their respective intra-day highs. Do not consider this as a trend reversal yet, as the underlying trend of the index is very much UP ⬆️ and intact. Intermediate divergence is prevailing between price and momentum and based on that we can expect some consolidation and slow down. 14,900 acts as the immediate support for the index, a slip below which can see a test of (14,600-14,800). Strategically I will not suggest to go outright bearish 🐻 right now and see off at least the first leg of fall. On the other hand, looking for long opportunities at lower levels and close to supports will be much better off. Thank you for following my work and please feel free to share your thoughts and suggestions. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
Nifty 04 Feb’21: Fractal Divergences Thanks to banking stocks and especially SBIN, the benchmark Nifty posts fourth consecutive positive daily close. Targets/ resistances from one of the rising channel's upper border at 14,900 is now taken care and if this kind of momentum continues then we should be headed towards (15,200-15,300). But there is a little element of caution we should pay attention to. A negative price-momentum divergence on the daily and 75min chart of Nifty at the current juncture. Such divergences generally indicate some consolidation or slow down going ahead and not necessarily a reversal. Considering the momentum with which we had this rally, I sense that the index will face some profit taking/ consolidation on the last trading session of the week. Thank you for following my work and please feel free to share your thoughts and suggestions. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul
divergence set up - some basic learningwhat is Divergence ? 👇 Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction what is Oscillator ? 👇 An oscillator is a technical analysis tool that constructs high and low bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions. how is Oscillator used in Trading ? 👇 Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets. Most traders use multiple oscillators to confirm range extremes and for determining the important entry and exit points. 🛑Indicators for spotting the divergence indicator patterns are the Awesome Oscillator, macd, the RSI, CCI or stochastic.🛑 disclaimer - personal view (can be wrong)
Education
by sankhyainvestments
13
ITC | Buy - RSI divergence + Ascending Triangle Formation NSE:ITC 1. Bullish RSI Divergence at Daily & 15m timeframe. 2. Formation of ascending triangle , which is considered more towards bullish probability trend. 3. Formation of higher low at daily timeframe. 4. Hourly candle took proper support on 22nd Jan during last 1.5hours at the resistance shown , respecting the long trend line. 5. Price above EMA 200 on daily timeframe, its still bullish. Swing Trade Target1 - 222 Target2 - 234 Target3 - 244 SL1 - 205 SL2 - 200 (trend reversal)
NSE:ITCLong
by libu1988
NIFTY - How bullish can it get from here?From the past 2-3 weeks I have remained cautious with my StopLoss and missed out on a few opportunities. Every time Nifty oroved me wrong for these 2 weeks and climbed higher. But this week will give a clearer picture. Nifty is pressing itself at the top against a long channel wall and the rising wedge too is crushing it's movement from the bottom. To supplement this we have 3 Divergences - MACD, RSI and TRIX. Further the Fib extentions quite expire at these levels (around 14700-15100). Now if Nifty can break them apart and march ahead then it needs some solid steam to force it up but again I'm back saying the probability of it falling is more. A healthy correction. Will Nifty break the shackles or fall back ? Let's see.
NSE:NIFTY
by CannySunny
3
Nifty 07Jan'21: Chance for Bears NowUnderlying momentum of the index slows down with a complete flat close from the benchmark Nifty50 in today’s session. A good-enough “Doji” on the daily chart clearly suggests quite a bit of tug of war between bulls and bears at the current juncture. Now on the 75min chart, prices have so far behaved quite as per our expectations. A short-term bounce back has resulted in a retest of channel’s lower border which now acts as resistance. If the index fails to find itself back within the channel, then expect some correction for which a major trigger will be a breach of 14,100. Expect some volatility and so I’d suggest to trade cautiously tomorrow. Trade Well. Trade Wise.
NSE:NIFTY1!
by Abhijit_Paul