Here is a graphical representation of the simple concept of bullish and bearish divergences.
Rules are pretty clear
Bearish Divergence
Happens only in uptrend
Observed on pivot Highs
Price makes higher high whereas oscillator makes lower high, indicating weakness and possible reversal
Bullish Divergence
Happens only in downtrend
Observed on...
Hello, it's Stock Justice here! In our latest video, we explore the intricate workings of the Dynamic Action Convergence Divergence (DACD) - a tool that synergizes the robustness of the ADX and the DI lines to create a dynamic and responsive trading indicator.
We plunge into the depths of DACD, starting with the base components - the Average Directional Index...
Hello, everyone!
There are a lot of traders and many of them use divergence in their own way. Most of these ways lead to the deposit losses in the long run, because generate the late entries. I like to trade with Alexander Elder’s approach to the divergence. It has the clear entry condition and the small stop-losses in case of mistake. Divergences allows to enter...
Here we can see a clear example of bearish divergence when Bitcoin crashed.
Traders who spotted it should have made crazy amounts in shorts positions.
Lets us know what you think about this educational idea in comments!
This tutorial on RSI Divergences is the second part of a RSI Masterclass series.
We have already discussed how to make use of the basic RSI indicator in our previous masterclass tutorial. We will understand the use of Divergence oscillators in short timeframes for BTCUSD.
A divergence happens when the price of an asset (BTC in this case) moves in the...
One fairly easy and useful pattern for determining reversals is the AB=CD pattern.
The pattern simply looks for two rising or falling legs up or down respectively. Then one simply measures the retracement level from point B followed by the projection from C (luckily tradingview has a tool to assist with this). If these values equal a 0.618 or 0.786 retracement...
What is the Moving Average Convergence Divergence (MACD) Indicator?
The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator. The indicator tells us the relationship between two moving averages of the security price. To determine MACD subtract the 26-period exponential moving average from the 12-period exponential moving...
In this guide I will walk you through the three main different kind of divergences and explain to you how you can spot them.
I also show you the extreme power RSI divergences have by looking at BTC/USD and mark them on the chart. It's quite special to see all these three kinds immediately after another, and it's really nice to see them all working out here as...
Weekly chart shows price nearing the apex of the ascending wedge with a target of $45. RSI is hitting resistance and MACD's histogram is possibly printing hidden bearish divergence.
H4 chart shows RSI, and possibly MACD, printing bearish divergence. The nearby demand has already been tapped once making it much easier for the next drop into it to potentially fall...
This was a classic case of Bearish MACD divergence. The price was forming higher highs and the MACD was forming lower Highs.
This could be a good reason to take a trade signal opposite of the trend. With out such indications trading reversals can be risky.
