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.
Divergence
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.
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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
DOGECOIN: Rising wedge + R.O.C DivergenceDOGECOIN: Rising wedge + R.O.C Divergence
The Wolf of Zurich has detected an ascending wedge + A nice divergence on the R.O.C = Rate Of Change, which indicates the variation of the Momentum of the underlying.
To watch the 50 and 200 exponential moving averages
The Fibonacci and ICHIMOKU levels
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!
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Disclaimer: This analysis is for educational purposes and should not be considered financial advice. Always conduct your own research before making any investment decisions.
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.
Nifty, Divergence Formed on the Weekly ChartA strong Divergence pattern is formed on the Weekly Chart.
Also we have an indecisive candle on the daily chart.
WTF Resistance : 23,200
WTF Support : 21,850
Disclaimer : This is my pre market analysis and my trading journal. Not a suggestion to buy or sell.
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.
Bullish Divergence formation in Asian Paints.Asian Pains is at support of trendline near 2800 on a monthly time frame and having resistance at around 3400. RSI is around 45. Bullish divergence is formed on chart.
Fundamentals of company:
ROCE - 34.37
ROE - 27.74
PE / Industry PE - 51.32 / 46.21
Company is fundamentally strong and can accumulate for long term.
Disclaimer : This is for education purpose only. Take advise from your financial adviser before investing.
KAMOPAINTS - DIVERGENCE & CONFLUENCE WITH H&S!Points to Note:
_______________________________
1. A hidden divergence with RSI, at the 61.8% level showing Oversold levels
2. An inverse Head & Shoulders(H&S) showing accumulation
3. A healthy breakout with volumes out of both the downward Trendline & the H&S
4. Good Price to buy, at the retest of the trendline
Disclaimer: This is merely an observation & NOT a Trade recommendation. Please take trades at your own discretion & analysis.
PAGEIND - Bullish Divergence - Reversal structureThe analysis is done on Weekly TF hence price may take few weeks to few months in order to reach the targets. Trade setup is explained in image itself.
After breakout, a major resistance becomes major support. Here we can see price taking support from that level many times. But not just that, it is also showing Bullish Divergence on RSI which shows that price can give upmove in coming days/weeks.
The company is also a leader in its segment with great market share. Hence it must be kept in radar
The above analysis is purely for educational purpose. Traders must do their own study & follow risk management before entering into any trade
Checkout my other ideas to understand how one can earn from stock markets with simple trade setups. Feel Free to comment below this or connect with me for any query or suggestion regarding this stock or Price Action Analysis.
Supper Bearish CoalIndia Hello friends,
it was good move came in coal india in last few days. but now days global market is looks so weak. Based on this data here coal india has super Bearish Diversion built up. if it goes correct it will give supper fall to 15-20 points. within 2 - 3 days it will give clear cut fall.
1. its on high / top of trend range
2. prices shows up but SRSI show complete down so both are not matching. it need price base correction.
3. after continue bullish it need correction to move up.
based on these points this stock is waiting for some trigger to fall. you can keep this in your watch list and tracking it.
Its not recommendation but just my point of view. So your own analysis and trade own your own risk.
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