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Divergence

📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
3
Mentorship InstaView 16 June’21: Indeed an Evening Star
Nifty View: As expected today’s 100 points sell-off from the benchmark Nifty index has lead to an “Evening Star” pattern on the daily time frame. This three candlestick pattern is bearish and suggests further price weakness. A confirmation of this will come once the price breaks below today’s low of 15,766. Do not get too carried away with this bearishness as the index is still in a strong UP trend and these candlestick patterns are prone to failures. Having said this, keeping in mind the nature of today’s sell-off (especially in the final 30mins), an extension on the downside is very much likely for a test of 15,700 or further down. We will get a much clearer and confirmed picture once today’s low gets compromised. Till then it’ll be prudent to stay cautious (as advised since the past few sessions) and wait for better opportunities. 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
1
Nifty InstaView 15 June’21: Evening Star?
Nifty View: Benchmark Nifty opened well in today’s session and that's all that it did. There was a dash of some intraday volatility, but overall the index faired well to hold onto the minor gap up with which it opened in today’s session. On the daily chart, we have a possibility of an “Evening Star” only and only if the index opens below 15,836 and stays below. But that is just anticipation. The facts of price support the underlying UP trend and with momentum one can expect further upsides. Price-momentum divergence persists which has so far not lead to any serious damage, but short term dips. Strategically makes sense to stay cautious with an overall positive bias. Banks, especially Private sector banks need to play an important role if upsides from Nifty has to continue. 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
1
Indiabulls Housing Finance - Very AttractiveMarket Cap ₹ 9,520 Cr. Stock P/E 7.41 Vs Industry PE 21.2 ROCE 10.2 % ROE 13.8 % OPM 5Year avg 87.4 % Promoter holding 22.5 % (negative) Pledged percentage 0 % Debt to equity 4.58 Intrinsic Value ₹ 1,173 Best of all is at current price Dividend Yield 15.1 % and it consistently paysout dividend. Technically bullish divergence Spotted. After the breakout of the Triangle , it would ZOOM. Choice is yours about whether you want to accumulate before or after the breakout.
ILong
by CannySunny
Nifty InstaView 14 June’21: Volatile Drama 
Nifty View: Quite a volatile session for the benchmark Nifty in today’s trade as the index oscillated within a day’s range of more than 200 points. The Adani group stocks related news from media and its counter news from the company led to wild swings for its stocks today which lead to some serious damage for derivatives traders. Coming back to Nifty, the index still manages to hold itself in a UP trend but now volatility has spiked up. Not to forget the price-momentum divergence persists and upsides can be capped and may lack high momentum. Time to stay careful and cautious and better to wait out a few sessions for the index to settle down. Today’s low of 15,630 now acts as an important trigger for any serious price correction. 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 InstaView 11 June’21: Exhaustion or Runaway?
Nifty View: Fourth successive positive weekly close for the benchmark Nifty index with today’s up move. All these weeks, the index has shown fine momentum to hit a new life high and also resilience to hold onto itself at this height. Now in today’s session, we had a gap up opening, post which there was minor intraday volatility with no follow-through buying. Thanks to IT and METALS the index managed to hold onto its gains and post a close at 15,817. The possible weakness from the “Rising Wedge” is now negated, but the price-momentum divergence continues. This means that moving ahead upsides are likely to be staggered and are likely to face profit-taking. So strategically let’s continue with a bullish bias and look for short term long opportunities. 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
1