Divergence Explained with ClarityOption Trading in India: Settlement and Expiry
In India, options are European-style, meaning they can only be exercised on the expiry date (unlike American options, which can be exercised anytime).
Most traders don’t hold options till expiry — they square off (buy or sell back) before expiry to realize profits or cut losses.
Expiry cycles:
Index Options (like NIFTY/BANK NIFTY): Weekly and Monthly expiries.
Stock Options: Monthly expiries only.
The settlement happens in cash; there’s no phys
Divergences
NIFTY MIDCAP DIVERGENCENSE:NIFTY NSE:CNXMIDCAP NSE:CNXSMALLCAP Diverging for couple of days. Ideally the broad market shall start picking up.
While Nifty is getting selling pressure near the Highs today. Midcap and Smallcap Index getting buying near support zone.
Midcap and Smallcap shall start picking up from here on.
The Broader Market Indices must converge with the Mainstream Index Nifty 50.
Inter-market Divergence is not sign of healthy trend. Longer the time the divergence prevails it leads to trend rever
Bearish Divergence and M patternIts short term bearish moment.
Price is going high but RSI making lowers
it may come bearish momentum.
GShort
RSI Divergence - Regular & HiddenThe price is moving in parallel channel as can be seen. So suppose once it reaches the lower line/ support, how to verify whether we can go long or we need to short. RSI Divergence comes handy here. We already have one confirmation that since price is moving in a channel and the lower line does seem to be support so it may bounce back.The next confirmation comes from RSI Divergence discussed below.
CASE STUDY 1 - RSI Positive Divergence
We observe a positive divergence in RSI opposite to ne
Divergence Masterclass 2 - Bullish divergenceIn the last thread, we discussed the basics of divergence. In this thread, we are going to learn about the positive divergence a.k.a Bullish divergence. I'll cover it in 3 parts:
1. What is bullish divergence?
2. Types of bullish divergence
3. Subtypes with illustrations
So, let's move ahead!
What is Bullish divergence?
A bullish divergence occurs when prices fall to a new low while the oscillator fails to reach a new low. It indicates that the selling pressure is decreasing and the bulls may
Divergence Masterclass 1 - What is Divergence? Hello all, today we are going to learn about divergence. A simple topic, which often confuses the newbies. I'll keep this thread short since this will lay the groundwork for the upcoming threads. Please go through this thread before proceeding to the next threads.
Foreward
In this thread, I would explain the following as easily and briefly as possible:
1. What is divergence?
2. What are the different types of divergence?
Introduction
When the price of a stock moves in a certain direction,
GLong
Short Term sing long HDFC.The stock is having good frequency around Pitchfork and trend line. One can enter long here or on dips with stop loss of 1210 on closing basis for a target of 1315/1345. I know it is making lower low and lower high clearly in downtrend but trading a pull back expectation. It may achieve target fast in coming days. Divergence are also supporting the idea even if it does not work being against trend, the stop loss is affordable.
HLong
Divergence reversal LongIndicators are telling that price may try to reverse at this level, specially the RSI divergence when appears in oversold area. I will go long with small stop loss just some ticks below the low made today. IF it works it can give decent return so one can take chance by risking small amount. Good Luck
Bullish Divergences!!!Oh my god! TCS has given major bullish signals in MACD and RSI. Please see the Arrows you will get what I am Talking about and TCS is in value Zone. One can buy Nov Futures and stay long for a target of 2450-2500-2520 with a stoploss of 2354 on closing basis. One can accumulate 2450 Nov calls all trading @ cheap rate.. Best of luck














