Divergence
NIFTY AND CNXAUTO INTERMARKET DIVERGENCENSE:NIFTY and NSE:CNXAUTO are showing Inter market Divergence again.
Last time Divergence occurred in June 2022 when Nifty gave reversal. Will the Divergence work again.
Chance are High. We need to wait for follow up Buying though.
Reliance - Positive Divergence Reliance is showing positive RSI divergence in Hourly timeframe… which indicates a possible reversal…
INTER MARKET DIVERGENCE NIFTY & BANKNIFTYInter Market Divergence btwn NSE:NIFTY and NSE:BANKNIFTY suggesting we are nearing the end of corrective phase. We should be heading for Rally. Buying opportunities here.
#Elliottwave
BULLISHhas formed divergence with v pattern concept
NEAR SUPPORT AT 365
RESISTANCES AT 440,520
RISK:REWARD= 1:3
BULLISHHas formed W PATTERN with BULLISH DIVERGENCE
made 2 times V PATTERN CONCEPT
SUPPORT AT 825-810
RESISTANCES NEAR 1000,1160,1275
What Is the RSI Indicator & RSI DivergenceRSI - Relative Strength Index Indicator:
The Relative Strength Index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. It is important to note that the RSI does not indicate whether a stock is a buy or a sell; rather, it provides insight into the current trend of the stock.
The RSI is a versatile indicator that can be used by traders of all levels and can be adapted for any style of trading. For example, a trader may use the RSI to identify support or resistance levels, or to spot divergences that can be used to predict future price movements. The RSI can also be used to locate potential trading opportunities by looking for overbought or oversold conditions. Furthermore, the RSI can be used in combination with other indicators, such as moving averages, to gain a better understanding of the market’s overall trend.
Formula of RSI:
The RSI is calculated using a formula that compares the magnitude of recent gains against recent losses over a specified period. The formula for the RSI is:
RSI = 100 - (100 / (1 + (Average of Upward Price Movements / Average of Downward Price Movements)))
What is periods in RSI:
Periods in RSI (Relative Strength Index) are the number of time periods used to calculate the RSI. The most commonly used period for RSI is 14, but other periods such as 7, 9, and 25 are also used. This number represents the number of time periods that are used to calculate the RSI, so a period of 14 would mean the RSI is being calculated using the last 14 time periods.
RSI divergence:
RSI divergences are a type of technical analysis used to identify potential trend reversals in the markets. They are based on the Relative Strength Index (RSI) and are used to spot potential trend reversals before they occur.
A divergence occurs when the price of an asset makes a higher high, but the RSI makes a lower high. This suggests that the current rally is losing momentum and may reverse course. Similarly, a lower low in the price and a higher low in the RSI may signal an impending rally.
Divergences are best used in conjunction with other technical indicators and analysis to confirm price action. It is also important to keep in mind that divergences do not always lead to reversals and may simply signal a period of consolidation before the price continues its current trend.
Divergence Cheat Sheet / Types of Divergence:
Will RSI show save TridentKnown the bears are coming back and the market in dilemma but Trident has a chance
Look at the divergence, Hope its saves with its strength !
Let see how it works
Divergence Cheat Sheet / Types of DivergenceWhat 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 is a higher chance of a reversal, especially if divergence appears on a higher time frame.
Oscillator indicator for divergence patterns is Weis Wave Volume, macd, the RSI, CCI, or stochastic OBV.
Types of divergences
There are 4 types of divergence, which are broadly classified into two categories:
1) Regular or Classic Divergence
2) Hidden Divergence
With each of these two categories, you have a bullish or a bearish divergence. Therefore, the four types of divergences are summarized as:
1) Regular Bullish Divergence
2) Regular Bearish Divergence
3) Hidden Bullish Divergence
4) Hidden Bearish Divergence
Divergence patterns indicate that a reversal is coming soon and becoming more likely but this is not an instant change. The more divergence there is visible, the more likely a reversal does become. Here are some guidelines:
The entry can not be taken on the basis of divergence indicator alone.
It’s best if a trader mixes the divergence indicator pattern with their strategy.
Use Higher time Frames.
Volume price analysis & Volume Divergence Cheat sheetWhat makes volume price analysis so crucial?
Volume and price analysis play a major role in trading and investing. Volume analysis helps traders and investors identify whether there is significant interest in a particular security. It also helps to identify potential buying and selling pressure, which can be useful in predicting future price movements. Price analysis helps to identify trends and price patterns, which can be useful in making trading and investing decisions. Volume and price analysis are important tools that can be used to spot trading opportunities and make sound decisions.
2 important things to keep in mind when analysing volume:
1. An increase in volume shows that market players are eager to participate in the developing market activity and want to see the price move higher in an uptrend or lower in a downtrend and are willing to buy higher in an uptrend or sell lower in a downtrend.
2. A drop in volume shows that traders are less interested in seeing prices rise in an uptrend or fall in a downtrend and are more eager to purchase lower in an upswing and sell higher in a downtrend.
Volume Divergence:
It is essential to check whether price and volume patterns are similar when comparing them. In that case, there is a good chance that the trend will continue. A volume divergence occurs when price and volume diverge, which indicates that the underlying trend may not be as strong.
According to my observations, whenever a stock is trading at a high volume, it seems to strongly trend either upward or downward. Here are some important concepts in volume price analysis:
1.When the price of a stock rises with increased volume, it indicates that the bull trend is stronger and buyers are interested, and this is a trend continuation signal.
2. If the stock price rises but volume decreases, it indicates that the bull trend is weakening and may reverse, and buyers are not interested. Price and volume divergence suggest a trend reversal.
3. If the price is falling while the volume is increasing, it indicates that the bearish trend is quite strong and sellers are active.
4. if the price is falling and the volume is decreasing, it indicates that the bearish trend is weakening and will soon reverse, signifying divergence between price and volume and a trend reversal.
RSI Divergence in AstraMicroAstraMicro is making a flat base pattern at Hourly timeframe,
And the RSI is in Uptrend.
Which indicates positive divergence.
It can give a good upmove up to 319
SL should be at 301.
Risk: Reward is 1:2.
USDINR: Bearish Divergence in hourly chartIn FX_IDC:USDINR here are the features we can see:
There is a clear bullishness throughout the session. I would say Very Bullish. All candles are hollow and green in hourly charts.
There is a bearish divergence in the #USDINR hour chart. Price highs are not sustained by RSI new highs - shown in the photo
Most likely: the uptrend will pause as there is a momentum missing.
So Dec Future is a short candidate for USDINR.
EIH Assoc Hotels Bullish biasOverall Structure Looks Bullish
SL 320
Target 510-520s Zone
POC Zone 365s
Price is moving in HH & HL Pattern on WeeklyTF
The price is just above the 200day Moving Avg for the stock with divergence
Stock is trading near the POC line
Expecting a potential upside on the stock
Lets deep dive into Daily analysis
On Daily time frame Chart we are able to understand that price was moving in downtrend
It gave a break out from the range and now trending up with Volume Spurt
And looks like Inverted Head & Shoulders Pattern formation
Potential Target based on Daily TF looks like 480s zone i.e. 23% upside with SL of 380
The Target is also reaching at Daily POC hence once that is achieved one needs to look forward to the price reaction on those levels for Weekly Trade
COULD THIS BE A DIVERGENCE? #BTCUSDT I have received couple of questions and disagreement on the btcusdt divergence move that's about to happen. What's your take? Let's know in the comment section. Thank you!
SLIGHT BULLISH DIVERGENCE on WEEKLY BITCOIN CHART ($BTC)Let's see if it works.
Using pretty simple technical indicator here. RSI and Trendline.
I know it looks ugly out there, confidence in the crypto market is also at all-time low. But still the indicators are signaling bullish. Let's see what happens. No guarantees here. All speculation.
DON'T TAKE IT SERIOUSLY. I'M NOT A PROFESSIONAL TRADER. ALL FUN AND SPECULATIONS.
Gold chart Analysis.Gold is showing positive divergence on chart. so, it may bounce from here up to 1717-1727 level.
It is also trading in downward parallel channel so correction also come from 1717-27 up to 1621,1560
SGX NIFTY Analysis - Learning Sgx nifty formed double top with negative divergence.
Volumes are dry.
Details mentioned in chart.
SBI Long TradeSBIN has completed A-B-C Correction and new impluse may start.
There are divergences seen in RSI which indicated seller are losing strengths.
There was also short covering in October futures which is also buy signal as people who were short in SBIN are booking there profits and buyer making new buying position.
Traders are requested to do their own analysis and please put comment.
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Nifty 50 - Educational Analysis on why the 7% drop - ConfluenceThis is an education post of understanding some possible reasons when a correction happens
_____________
Few Reasons for Nifty's Bearish Outlook (Short term)
1. Negative RSI Divergence - Price goes up and RSI goes down
2. Break of Rising Wedge Pattern
3. Break of previous swing low (17160)
4. Previous peak rejection making the 18100 as a double top
5. MACD divergence and crossover
_____________
Daily
Hourly
On hourly Time frame
6. Broke a major trendline
7. With a Head and shoulders
8. A rounding top
So multiple factors and views indicating - A confluence View
RSI Divergence: Apollo TyresIn NSE:APOLLOTYRE the stock was making Higher highs whereas RSI was making lower highs creating the divergence. The stock yesterday closed below the trendline and so did the Rsi. The target for the same will be the immediate support that is also the channel line of the stock.
* It is my analysis and not a buy or sell recommendation.
Oscillator Divergence and its StrengthBe it RSI, MACD or any oscillator this is how you need to identify the Pattern with its strength
What you see above is Bullish Divergence ... With this understand how a bearish divergence will be.
Train Your eyes... then train you mind..
B-Nifty raised with Negative Divergence .B-Nifty raised with Negative Divergence if correction take place. it may be deep.
Major resistance 40500-40800
BULLISH on INDIAMARTNSE:INDIAMART
The price has given a breakout from the channel pattern. The breakout is with good volume. The MACD is bullish and RSI is above 50 showing good momentum. The MACD and RSI also showing the divergence from he prices which implies that this correction is over and bottom has been made. The view is for 6 to 9 months. SL levels is around 4165.60 and the Target levels is around 5981.50
The price is still below 200 dma and can face resistance there so it is recommended to buy in a staggered way, some on the breakout and rest when price crosses the 200 dma.
Disclaimer : This is my own view and analysis. This is for educational purposes. This is not a recommendation, call or a tip.
