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Divergence

What is Divergence And How Does it Work ... For Learners ...Dear All , I am not A Professional in Share Markets But Sharing Knowledge always increases Knowledge of Everyone ... So , I am just Sharing About Possible Divergences of Share Price with RSI ... Basically , There are two types of Divergences :- (1) Positive/Bullish Divergence :- It is known By Joining Bottoms in A Chart And Comparing it with RSI or Any Indicator ... There are Two Possibilities in this Divergence :- : The Trend is Going Upwards & RSI is Slopping Downwards . : The Trend is in Downward Direction & RSI Slops Upwards . (2) Negative/Bearish Divergence :- It can be derived by Connecting the Tops in A Chart And Comparing it with RSI or Any Indicator . Similarly , It is Identified if :- : The Trend is Up And RSI Slops Down . : The Trend is Down While RSI Shows Upwards Movement . So That was From My Kitty ... You Can Apply Divergence Theory With Any Indicator ... It is Simply Awesome Tool for A Trader ... You All Should Keep it in Your Kitty ... Good Luck !!!
NSE:YESBANK
by Mohit_Jangir
33
Potential reversal of downtrend - Syngene International (BUY)Syngene International daily charts show that it has been in a downtrend since 12-Dec-2016 making lower lows and lower highs. Price broke above the downtrend resistance line in Sep 2017 and seems to have found support at levels of 440-450 (as observed in may 2017) MACD & On balance volume indicators show bullish divergence as per the chart as observed in the month of May & August 2017 which signal early signs of trend reversal on the charts. Cup and handle pattern formation is also visible on the charts. Trading Strategy : Buy setup Buy @ CMP 501.5 1st target @ 550 2nd target @ 600 Stop loss : below 460 Risk/reward ratio : 2.49 Disclosure : The view expressed above is my own analysis on the stock. You are responsible for your own investment / trading decisions.
NSE:SYNGENELong
by Himanshu_Khiara