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Divergence

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.
NSE:INDIAMARTLong
by Kunal-Battu
Perfect example of DOUBLE BOTTOM With DIVERGENCENSE:VOLTAS Double bottom is always a perfect pattern for LONG ENTRY. But I prefer to add some more factors which increases my probability to achieve the target. In this analysis tutorial, we will learn that. * After falling wedge pattern breakdown Stock momentum is exhaust near a good Support. - Never Entered in ONE SIDED BREAKDOWN or BREAKOUT. Wait for the Next GOOD SUPPORT - RESISTANCE, Because one sided move Creates a Doubt( maybe its a TRAP for a RETAIL TRADER like us). - ONE SIDED BO-BD can be a FAKE BO-BD ( In Mostly cases ) - And incase, If it's not a Fakeout - Fakedown, But a genuine one and we missed that - DON'T PANIC - Never entered in FOMO because this can spoil our RR. - THIS STRATEGY IS A SOLUTION FOR ALL THE ABOVE SITUATIONS. * And at that support( IN BIGGER TIME FRAME) I Found BULLISH DIVERGENCE. - Divergence is basically a manipulation by a big players. - In Bullish divergence with the help of some OSCILATTORS we see PRICE IS DECREASING but AVERAGE PRICE or STRENGTH or VOLUME is INCREASING. - {Opposite in BEARISH DIVERGENCE} - But if there is not any SUPPORT - RESISTANCE - - - - - IGNORE THAT AND NEVER ENTER. - Because WE FOLLOW ONLY&ONLY PRICE ACTION, Indicators is secondary. - And basic principle of PRICE ACTION is - NEVER ENTERD WITHOUT A SUPPORT RESTISTANCE ZONE OR TRENDLINE SUPPPORT OR ZONE. * When this stock Follows all rules of BULLISH DIVERGENCE I took a LONG ENTRY. - COMMENT if you wants to know all the RULES of DIVERGENCE. * Now chart pattern shows a signal of UPSIDE MOVE and our Divergence setup gives us a confirmation of that SO I ENTERED and ACHIEVED THE TARGET I hope this is helpful for beginners and a good revision for a pro players. DIVYA BIHARI DAS this side. THANKYOU SO MUCH. --------- COMMENT ----------- - Your Views - My Mistakes - Next Topic - Anything Relevant
NSE:VOLTASEducation
by DivyaBihariDas
What is Bearish divergence?Hey everyone! 👋 Last week, we explained some of the basics to know when it comes to understanding bullish divergences in the markets. If you haven’t read that post, be sure to check it out here: In this post, we are going to examine just the opposite: bearish divergences! Please remember this is an educational post to help everyone better understand investing and trading principles. In no way are we trying to promote a particular style of trading. Table of contents: 1. What is bearish divergence? 2. Types of bearish divergence 3. Some examples When the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, it is called divergence. Divergence warns about potential underlying weakness in the current trend. What is Bearish divergence? A bearish divergence occurs when the price rises to a new high while the oscillator fails to reach a new high (exception being hidden bearish divergence). It indicates that the buying pressure is decreasing and the bears may soon take over the market. Generally, a bearish divergence occurs at the end of an uptrend. It has two sub-types: - Classic bearish divergence - Hidden bearish divergence What is classic bearish divergence? The classic bearish divergence occurs at the end of a bullish trend and indicates that a trend reversal may occur soon. In this, the price and the oscillator always either form a higher high or an equal high. It can be subdivided into 3 types, based on the strength. 1. Strong Bearish Divergence In strong bearish divergence, the price forms higher highs but the oscillator forms lower highs. This means that the buyers are not buying at the same momentum i.e. the buying pressure is decreasing. Price : Higher highs Oscillator : Lower highs Exhibit: Strong bearish divergence Exhibit: Strong bearish divergence followed by a reversal 2. Medium Bearish Divergence The price makes double top (almost the same level as the previous high) and the oscillator makes lower highs. This indicates that at the same price levels, the momentum is decreasing. Price : Equal highs Oscillator : Lower highs Exhibit: Medium bearish divergence Exhibit: Medium bearish divergence followed by a reversal 3. Weak Bearish Divergence In weak bearish divergence, the price makes higher highs but the oscillator has almost the same highs. This means that even though the price is increasing, the momentum is intact. Price : Higher highs Oscillator : Equal highs Exhibit: Weak bearish divergence Exhibit: Weak bearish divergence followed by a reversal What is hidden bearish divergence The hidden divergence occurs during the correction phase of a trend and is a possible sign of a trend continuation. In this, the price forms lower highs, but the oscillator forms higher highs. This indicates that even at an increased momentum, there is enough selling going on to push the price down. This type of divergence occurs with less frequency as compared to the other types. Price : Lower highs Oscillator : Higher highs Exhibit: Hidden bearish divergence Exhibit: Hidden bearish divergence followed by a reversal Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram for more awesome content! 💘
AEducation
by TradingView
7
What is Bullish divergence?Hey everyone! 👋 Last week, we explained some of the basics to know when it comes to understanding divergences in the markets. If you haven’t read that post, be sure to check it out here: 👇 In this post, we are going to examine bullish divergence further, along with a few exhibits. Please remember this is an educational post to help everyone better understand investing and trading principles. In no way are we trying to promote a particular style of trading! Table of contents: 1. What is bullish divergence? 2. Types of bullish divergence 3. Some examples When the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, it is called divergence. Divergence warns about potential underlying weakness in the current trend. What is bullish divergence? A bullish divergence occurs when prices fall to a new low while the oscillator fails to reach a new low (exception being hidden bullish divergence). Positive divergence signals that the price could start moving higher soon. Generally, a bullish divergence occurs at the end of a downtrend. It has two sub-types: - Regular Bullish divergence - Hidden Bullish divergence What is classic bullish divergence? The classic bullish divergence occurs at the end of a bearish trend and indicates that a trend reversal may occur soon. In this, the price and the oscillator always either form lower lows or equal lows. It can be subdivided into 3 types, based on the strength. 1. Strong Bullish Divergence In strong bullish divergence, the price forms lower lows but the oscillator forms higher lows. This means that the sellers are not selling at the same momentum i.e. the selling momentum is decreasing. Price : Lower lows Oscillator : Higher lows Exhibit: Strong Bullish Divergence Exhibit: Strong bullish divergence followed by a reversal 2. Medium Bullish Divergence The price makes double bottom (almost the same level as the previous low) and the oscillator makes higher lows. This indicates that at the same price levels, the momentum is increasing. Price : Equal lows Oscillator : Higher lows Exhibit: Medium bullish divergence Exhibit: Medium bullish divergence followed by a reversal 3. Weak Bullish Divergence In this, the price makes lower lows but the oscillator has almost equal lows. This means, that even though the price is decreasing, the momentum is intact. Price : Lower lows Oscillator : Equal lows Exhibit: Weak bullish divergence Exhibit: Weak bullish divergence followed by a reversal What is hidden bullish divergence? The Hidden divergence occurs during the correction phase of a trend and is a possible sign of a trend continuation. In this, the price forms higher lows, but the oscillator forms lower lows. This indicates that even at a decreasing momentum, there is enough buying going on to push the price upwards. This type of divergence occurs with less frequency as compared to the other types. Price : Higher lows Oscillator : Lower lows Exhibit: Hidden bullish divergence Exhibit: Hidden bullish divergence followed by a reversal Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter and Instagram ! 💘
BSE:SHIVACEMEducation
by TradingView
19
What is divergence?If you have been in the market for some time, you may have heard of something called “divergence” . Today we are going to share an informative write-up along with a few exhibits that may help you solidify your understanding of this important trading concept. This post will also lay the groundwork for future posts about related topics. Please remember this is an educational post to help all of our members better understand various concepts used in trading or investing. This in no way promotes a particular style of trading! We are going to cover the following topics: 1. What is divergence? 2. What are the different types of divergence? - Bullish divergence or Positive divergence - Bearish divergence or Negative divergence Introduction When the price of a stock moves in a certain direction, the momentum oscillator should also move in the same direction. Example : When the Price makes a higher high, the momentum oscillator should also make a higher high. This is called convergence since both the price and the momentum are converging in the same direction. In a few circumstances, the momentum oscillator and the price do not move in tandem. This is called Divergence. What is Divergence? When the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, it is called divergence. Divergence warns about potential underlying weakness in the current trend. The price may or may not reverse at the exact occurrence of the divergence. Different types of Divergence Broadly, divergence can be classified as positive or negative. Positive divergence is also known as “Bullish divergence”, while the negative divergence is typically called “Bearish divergence.” 1. Bullish divergence / Positive divergence A bullish divergence occurs when prices fall to a new low while the oscillator fails to reach a new low (exception being hidden bullish divergence). Positive divergence signals that the price could start moving higher soon. It has two sub-types: i) Regular Bullish divergence ii) Hidden Bullish divergence Some exhibits of Bullish divergence: Exhibit 1: Regular bullish divergence Exhibit 2: Hidden bullish divergence Exhibit 3: Bullish divergence followed by a subsequent reversal 2. Bearish divergence/Negative divergence A bearish divergence occurs when the price rises to a new high while the oscillator fails to reach a new high (exception being hidden bearish divergence). Negative divergence signals that the price may soon start falling to lower levels in the future. It also has two sub-types: i) Regular Bearish divergence ii) Hidden Bearish divergence Some exhibits of Bearish divergence: Exhibit 1: Regular bearish divergence Exhibit 2: Hidden bearish divergence Exhibit 3: Bearish divergence followed by a subsequent reversal Thanks for reading! As we mentioned before, this isn't trading advice, but rather information about a tool that many traders use. Hope this was helpful! See you all next week. :) – Team TradingView
NSE:ADANIPOWEREducation
by TradingView
40
NIFTY getting ready for fresh DOWNSIDE. Multiple confluence found which indicates break in nifty rally and possible reversal. 1. 90% fib retracement level found at 17600 in 4th wave which can act as major resistance from 10feb swing high. 2. 17600 is the level conferencing with divergence trend line which is a psychological round number. 3. Divergence is found on 15 min timeframe. look at RSI even if market reaches 17600 still divergence will be intact. 4. Triangle pattern is also seen so if market takes support from lower trend line it can bounce back up to 17600. But as triangle pattern has possibility of breakout on either side. be cautious for this week. 5. Smart money and pro always create positive sentiment before major reversal as they make money by trapping retailers. so most of the retailers might be thinking that war might be over soon, everything seems bullish now. crude oil cooling off, but the diesel price hike for bulk buyers was the first hint for medium term down trend. My call for up coming days is bearish. market may dip more. so be cautious and make you Portfolio light. Thank You Market Yogi
NSE:NIFTYShort
by Market_Yogi
1