You can see the price made a lower low and the oscillator made a higher low, it is rising. This is a bullish divergence and you should see the price halt and reverse back into a bullish. A 15-minute time frame is a small divergence, so it is best to only expect maybe a few hundred dollars price gain before another divergence brings the price back to bearish.
The larger the time frame the more powerful the divergence. Sometimes you can get false signals or the signals won't be entirely clear. You can mess around the oscillator's settings to try and see things more clearly, but I prefer to keep things at default to try and mostly see what other traders are also looking at and work with the trends.
There are many oscillators you can use and you should do your own research and experience which ones you prefer. I am currently using a Money Flow Index (MFI) which is similar to a Relative Strength Index (RSI) but also includes volume. You can also use Stochastic, Stochastic RSI, KDJ, WR, and there are more.
I use to trade with DEMA crosses but I saw those were lagging by a few candles. Even as a winning strategy it annoyed me how I couldn't tell where the top and bottoms would occur, and sometimes the price would drop lower than my entry before a cross downward and I'd have a losing trade. With divergence, I can see when the price is due to stop rising or falling and select that as an exit or entry, but I have to be diligent at paying attention to the chart. This makes it easier for larger time frames or easier to make scalp trades at shorter time frames. I like to pair an oscillator with a Bollinger Band.
The larger the time frame the more powerful the divergence. Sometimes you can get false signals or the signals won't be entirely clear. You can mess around the oscillator's settings to try and see things more clearly, but I prefer to keep things at default to try and mostly see what other traders are also looking at and work with the trends.
There are many oscillators you can use and you should do your own research and experience which ones you prefer. I am currently using a Money Flow Index (MFI) which is similar to a Relative Strength Index (RSI) but also includes volume. You can also use Stochastic, Stochastic RSI, KDJ, WR, and there are more.
I use to trade with DEMA crosses but I saw those were lagging by a few candles. Even as a winning strategy it annoyed me how I couldn't tell where the top and bottoms would occur, and sometimes the price would drop lower than my entry before a cross downward and I'd have a losing trade. With divergence, I can see when the price is due to stop rising or falling and select that as an exit or entry, but I have to be diligent at paying attention to the chart. This makes it easier for larger time frames or easier to make scalp trades at shorter time frames. I like to pair an oscillator with a Bollinger Band.
Comment:
I posted this at the exact time of reversal back downward, and I was not expecting that. Remember to use risk management.