Seems I might be having my draft post taken from me as I write this because I was going to be using the 4 hour charts to explain why I was still bullish and I see the price pump right before my eyes. But the fundamentals regarding hidden bullish and bearish divergence remain the same. We see the hidden bullish divergence in blue and the bearish divergence in red. I don't doubt that this pump we are seeing might fail and test the last set of blue lines, or we might be taking off right now.
If this bullish divergence was nested in bearish divergence on a higher timeframe (12h or 1d) we would not consider it the controlling pattern. But as we look at the 12h and 1D charts divergence is not visible. This divergence calls relative tops and bottoms for swing trades we see a higher low and we will either have a new high above 10k or we will see a bullish chart pattern such as a ascending triangle develop.
@thenerd, Right now the thing for me personally is to not perseverate over the charts when I have already taken a long position. The 1D charts look good with the bullish MACD cross and plenty of room to go up on the RSI. The 4H charts show that we have bullish divergence proving that we have created a higher low (which is what this post was about) and the 1H charts look healthy as well. Since I called the bottom we have spent more time than not with the RSI over 50 and the MACD above zero. We are experiencing a lot of resistance with within the blue rectangle, with one level at the base and another level at the top. More likely than not we will be breaking through shortly first one, then the https://other.https://www.tradingview.com/x/Li1euYqX/
Alf_Alpha
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@This_Guhy, well, we're in the middle of the blue now. Hopefully we'll be passed it soon :)
This_Guhy
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@thenerd, Looks like the resistance was too strong and we are on our way back down.