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Divergence

XAUUSD 1H: TRIX Divergence Case StudyThis is another educational case study showing how TRIX Chart Divergence can work on XAUUSD, this time on the 1H timeframe. The logic is simple: price updates a local high or low, but TRIX does not confirm the move. The indicator marks the divergence both in the oscillator pane and directly on the price chart. For me, divergence is not an automatic entry signal. It is only a warning that momentum may be weakening. I still need confirmation, such as a trendline break, an order block reaction, a structure shift, or another price action setup. On the examples visible on this chart, the previous divergence setups offered around 1:2 R/R or better after confirmation. Now a new TRIX divergence is forming on the current move. The divergence is already visible, but the trade setup still needs confirmation. I’m watching whether price gives a clean entry setup and how much reaction this divergence can produce. This indicator is not a standalone trading system. Divergences can warn about a possible correction or reversal, but they do not guarantee an immediate reversal. The indicator used in this example is TRIX Chart Divergence, available on my profile.
PEPPERSTONE:XAUUSDEducation
by josseliani
-3.33% - The Start of a Bubble Deflating? I am Out!I am not a perma bear. I believe in equities, innovation, and long-term wealth creation. Markets rise more often than they fall, and betting against human progress is usually a mistake. But there are times when risk becomes too obvious to ignore. For me, that happened in March 2026. I sold all my stocks because I believed the market had moved from expensive to irrational. Since then, the market has gone parabolic, and missing that rally has been painful. Even so, I cannot bring myself to buy back in. So, to see this -3-3% shock today signaled that this might be the start. According to my analysis, a -3.3% broad market 1-day decline is a shock event. The first issue is valuation. The Shiller CAPE ratio, which compares prices to ten years of inflation-adjusted earnings, suggests the S&P 500 is among the most expensive markets in modern history. Valuations can stay elevated for a while and may even rise further, but eventually earnings must justify prices. I do not believe they currently do. ]The second issue is AI. I believe AI is a transformative technology. But transformative technologies can still create bubbles. The internet was real in 1999, yet investors paid absurd prices for future profits that often never arrived. Today, AI is being priced as if massive profits are inevitable and imminent. Yet the costs are enormous: chips, energy, data centers, infrastructure, talent, and ongoing model training. Investors seem focused on the upside while ignoring the economics. AI may change the world, but that does not guarantee attractive returns at current valuations. The third issue is inflation. Markets are still pricing in a future where inflation falls, rates decline, and liquidity supports higher asset prices. But that outlook depends on favorable conditions. If oil prices remain elevated because of conflict in Iran or broader energy disruptions, inflation could remain stubbornly high. Higher energy costs affect transportation, manufacturing, food, and consumer spending. If inflation stays elevated, the Federal Reserve may be unable to cut rates aggressively. Higher bond yields would put pressure on equity valuations, particularly high-growth and AI-related stocks. The fourth issue is political and regulatory risk. I see signs of weaker investor protections and increasing tolerance for speculation. Crypto is the clearest example. Much of the sector appears driven more by speculation, insider incentives, and political influence than by genuine economic utility. When regulation weakens and speculation dominates, ordinary investors often bear the consequences. Then there is the coming IPO wave. Companies such as SpaceX, OpenAI, and Anthropic are frequently discussed as future public listings. These are impressive businesses, but they are also capital-intensive, expensive, and valued on extremely optimistic assumptions. My concern is that if these companies are rapidly included in major indexes, passive investors, pension funds, and retirement accounts will be forced to buy them regardless of valuation. That shifts risk from venture capital firms and insiders to the broader public. This is often how bubbles end: insiders seek liquidity while retail investors buy the story. Taken together, I see a dangerous combination of risks: extreme valuations, persistent inflation, elevated energy prices, speculative AI spending, crypto excess, weaker regulation, and a pipeline of highly valued private companies preparing to enter public markets. Maybe I am wrong. Maybe AI profits exceed expectations. Maybe inflation falls and rates decline. Maybe the market continues climbing. But I cannot justify buying at these prices. Missing the rally hurts, but I would rather miss the final stage of a bubble than buy into a market that appears priced for perfection. I am simply waiting for valuations and expectations to reconnect with reality. If this is a late-stage bubble, a 35% decline is probable. It may be what is required to bring prices, expectations, and investor psychology back to earth.
NASDAQ:NDXShort
by liberatedstocktrader
Bitcoin's Final Shakeout Before the Bottom?Bitcoin isn't doing anything unusual. In fact, it's doing what it has done before. The setup 📊 When you overlay the current cycle with the previous one, the similarities become hard to ignore. The sequence looks very familiar: • Expansion phase • Cycle peak • Sharp decline • Extended correction Up to this point, Bitcoin has been tracking that roadmap surprisingly well. Where are we now? If we use the previous cycle as a reference, the final bottom didn't arrive immediately after the correction. Before the recovery began, price printed one last low. The clue came from momentum 🧠 Price continued lower. But RSI didn't. Instead, RSI started showing strength beneath the surface by forming a bullish divergence. That divergence was an early indication that bearish momentum was fading. Not long after, the market found its bottom and a new cycle began. What could happen next? If the current cycle continues to mirror the previous one, we may still see: • One final dip in price • A completed bullish RSI divergence • A shift in momentum back toward the bulls That trio could become the recipe for a major bottom. So the question is: Is Bitcoin preparing for one last shakeout before the next leg higher... or will this cycle write a different story? ⚠️ Disclaimer: This is not financial advice. Always do your own research and manage risk properly. 📚 Stick to your trading plan regarding entries, risk, and management. Good luck! 🍀 All Strategies Are Good; If Managed Properly! ~Richard Nasr
OKX:BTCUSDT
by TheSignalyst
2
XAUUSD: TRIX Divergence Scalping Case StudyThis is an educational case study from yesterday’s XAUUSD intraday session. The idea is published on the 15m timeframe, but the examples shown on the chart are based on 1m scalping logic with TRIX Chart Divergence. In this morning session, there were three examples where the setup offered clear risk/reward: - first reaction: around 1:2 R/R - second reaction: more than 1:7 R/R - third reaction: around 1:2 R/R Of course, this does not mean every divergence gives this result. For me, TRIX divergence is only a warning that momentum may be weakening. The actual entry still needs confirmation from price action. The logic is simple: price makes a new local high or low, but TRIX does not confirm the move. The indicator marks the divergence both in the oscillator pane and directly on the price chart. I do not enter blindly after a divergence. For confirmation, I use simple price action, such as a trendline break through the last local highs or lows after the divergence appears. In these examples, TRIX divergence helped to identify short-term momentum weakness before several intraday reactions. I also added adaptive TRIX range levels. Classic TRIX does not have fixed RSI-style 70/30 levels, so these dynamic levels help me filter weaker divergences inside the range. For me, cleaner signals usually appear near or outside the adaptive range boundaries. This indicator is not a standalone trading system. Divergences can warn about a possible correction or reversal, but they do not guarantee an immediate reversal. The indicator used here is TRIX Chart Divergence, available on my profile.
OANDA:XAUUSDEducation
by josseliani
Market Movements and Divergence between Spot and Futures MarketThe relationship between the spot asset and the futures contract can reveal a great deal about what institutional market participants are doing at any given moment. However, before diving into that, it is important to understand how the market functions as a whole and how price discovery is formed separately on the underlying asset and on derivatives. By the way core difference between Spot and Futures trading: Spot trading involves buying or selling an asset, giving you direct ownership of the asset. Futures trading involves trading contracts that obligate you to buy or sell an asset at a predetermined price on a specific future date. This means you do not own the underlying asset but sign a contract to buy or sell an asset at a predetermined price. Of course, this article is not sufficient to explain all the differences between them, but it briefly attempts to explain how certain market movements create divergences and how these two markets influence each other. It is important to understand that the spot and futures markets, despite having separate order books, do not exist in isolation from one another. They are interconnected through arbitrage algorithms, funding mechanisms, liquidation processes, delta hedging, and institutional risk management. It is precisely the interaction of these liquidity flows that forms modern market price discovery. How Price Movement Is Formed Market movements occur as a result of aggressive market buying and selling. The more liquid the instrument is (the higher its market capitalization), the more liquidity is required to move price higher or lower. Price discovery on the most liquid instruments is primarily driven by institutional market participants. Price discovery on the underlying asset itself is relatively straightforward. When an institutional participant buys an asset and their buying activity dominates the market, price begins to move higher. Essentially, a rising price means that someone is lifting the opposing sell orders. Let’s break this down with an example. Suppose the asset is trading at $100. At a certain moment, the order book is filled with the following orders. On the left is the price, and on the right is the order size denominated in dollars. In this case, if we execute a $4,000 market buy order, we would absorb all the sell orders resting at 101 and 102, while partially filling the sell orders at 103. As a result, the last traded price of the asset would end up around 103. After that, new orders begin filling the gap between 100 and 103. It is also possible that other market orders could push price back down toward 100. However, within the context of our example, if the opposing sell orders continue getting absorbed, then the aggregate flow of transactions will continue driving price higher. It is important to understand that market orders represent aggressive liquidity. They are what move price because they execute against existing limit orders resting in the order book. Limit orders, in turn, represent passive liquidity and form the visible bid and ask levels. When the aggressive flow of market orders becomes sufficiently strong, the matching engine effectively begins to “jump” through low-liquidity zones. This is precisely why sharp impulsive moves and imbalances can form on the chart. Futures Market Mechanics On futures markets, the order book visually looks almost identical because the matching engine operates under a similar principle. However, there is one critical difference — behind the futures order book stands a system of leverage, liquidations, funding rates, and open interest. This fundamentally changes the mechanics of price movement. The core difference between traditional futures and perpetuals is the expiration date: standard futures expire on a set date, whereas perpetual contracts can be held indefinitely. (It is important to understand that perpetual futures are a synthetic derivative and do not involve physical delivery of the underlying asset. In order to keep the price of the perpetual contract aligned with the spot market, exchanges use the funding rate mechanism. When perpetuals trade at a premium relative to spot, long positions pay funding to short positions. When perpetuals trade at a discount, short positions pay funding to longs) At the same time, futures pricing is not formed completely independently from the underlying asset. There is a direct relationship between the spot and futures markets. If the futures price begins deviating significantly from fair value relative to spot, high-frequency arbitrage algorithms (HTF Bots) simultaneously buy one market while selling the other, compressing the imbalance. This is why spot and futures markets, despite having separate order books, effectively function as a unified liquidity system. On futures markets, price can move far more aggressively because, in addition to ordinary market orders, the market also receives: • liquidations • stop orders • forced position closures By the way you should know the key concepts while trading futures: Initial Margin: Deposit required to open a futures contract. Maintenance Margin: The minimum balance that must be maintained in your account to keep the position open. Leverage: Futures use high leverage. If a losing trade causes your equity to drop below the maintenance margin, a “Margin Call” is triggered. If we return to the same example where the asset is trading around 100, then in addition to the normal order book, liquidation clusters also appear (the third column in the grid). Stop-loss orders are not visible liquidity inside the order book. They reside on a separate conditional server maintained by the exchange and are only activated once a certain price is reached. Once activated, a stop-loss turns into an aggressive market order that begins executing against the nearest available liquidity. This is precisely why zones containing clustered stop orders often become the source of sharp impulsive price movements. If, in this case, we absorb $1,000 worth of sell liquidity at 101 via market buying, price would then reach the zone containing $5,000 worth of short liquidations. Since the liquidation of a short position is technically a forced buy, the exchange begins sending additional market buy orders into the market in order to close losing short positions. As a result: • initially, the market receives a $1,000 market buy order • once the liquidation zone is reached, an additional $5,000 flow of market buy orders is triggered These orders then begin lifting the sell liquidity resting above, which can allow price to continue moving higher and execute orders resting at 102 and 103. It is important to understand that liquidations themselves do not “push” price through some magical mechanism. They simply turn into aggressive market orders that execute against existing liquidity in the order book. This is exactly why liquidation cascades can significantly accelerate price movement. Liquidity Sweeps and Position Accumulation However, the opposite scenario is also possible. If, during the activation of a liquidation cascade, a large participant begins aggressively selling into this flow of market buying, they may use the impulse to build a short position (Buy-Side Liquidity taken). A large participant cannot accumulate a meaningful position under conditions of low opposing liquidity without experiencing significant slippage. This is why institutional participants are often interested in creating impulsive moves into liquidity zones where the following are located: • stop orders • liquidations • breakout buyers and sellers The flow of aggressive market orders coming from the crowd allows the large participant to absorb that volume through pre-positioned limit orders. For greater clarity, let’s look at the inverse example. Imagine a similar market situation: In this case, instead of buying, we are selling at market. We execute a market sell into the 99 zone, after which a $3,000 cascade of long liquidations is triggered. Since the liquidation of a long position represents a forced sale, additional market sell orders begin entering the market. These orders execute against the nearest resting buy orders, which means the liquidity resting at 98 and 97 can also be fully consumed. In some cases, after an aggressive impulse on the futures market, price begins deviating significantly from the underlying spot asset. This activates arbitrage HFT algorithms, which begin opening opposing positions in order to compress the spread between the two markets. If, at that moment, a large participant has already completed position accumulation through the absorption of opposing liquidity, the combined pressure from institutional limit orders and HFT algorithms can trigger a sharp reversal in price. This type of mechanism is often what creates long wicks and liquidity sweeps. Spot vs Futures Divergence At this point, you are probably asking yourself: Imagine a situation where identical lows were formed on both the underlying asset and the futures contract. Then price sweeps the low on the futures contract, while the underlying asset itself does not form a new low. After that, price begins showing signs of reversal. A situation like this may indicate that a large participant is interested in accumulating a long position. Why? Because the fact that the low was not broken on the underlying asset may suggest that aggressive selling pressure on the spot market was insufficient to continue a meaningful decline. At the same time, the futures market did sweep the low, which was most likely accompanied by a cascade of long liquidations. If price then fails to continue aggressively lower and instead begins reversing, this may indicate that the forced selling coming from liquidated long positions was absorbed by opposing demand from a large participant. In other words: • the crowd is forced to sell through liquidations (Sell-side Liquidity taken) • while the large participant absorbs that selling flow and accumulates a long position Situations like this can serve as additional confirmation for your hypothesis regarding current price discovery and institutional participant behavior. Delta Hedging and Market Maker Behavior It is also important to recognize that Market Makers are not always directional participants. In many cases, they act primarily as liquidity providers and are forced to hedge their own exposure. For example, if market participants begin aggressively buying futures contracts, the Market Maker may end up with a significant short exposure. To reduce risk, they are forced to buy the underlying asset on the spot market (Delta Hedging). This creates additional upward pressure on price and can reinforce the existing trend. As a result, a self-reinforcing cycle can emerge: • growth in the spot market pulls futures higher through arbitrage • rising futures prices increase speculative demand • Market Makers are forced to buy spot for delta hedging • the additional demand further accelerates price appreciation Processes like these are capable of creating extremely aggressive trending moves until the system eventually finds a new liquidity equilibrium. It is important to understand that no single participant fully controls the market. Price is formed through the interaction of many liquidity flows. However, large participants are capable of significantly influencing short-term price movements through capital size, algorithmic execution, and sophisticated liquidity management. Enjoy!
BINANCE:BTCUSDTEducation
by LonesomeTheBlue
1
Bitcoin 1W Likely Breakdown From Current Bear Flag FormationIt looks like Bitcoin's (BTCUSD) price action is playing out similarly to the previous price cycles. Bitcoin's price tends to rally for about three years. This is followed by a bear market that lasts about one year. One year from the peak price of $126k will take us to about September/October of 2026. A bear flag exists on the weekly chart. I see the possibility for bitcoin's price to break below the bear flag formation for another leg down. I estimate the potential bottom at about 38k, which would be a 70% decline from the peak. That would be less than the 78% drop from the last price cycle (each cycle experienced a shallower percentage decline). The last price cycle bottom formed a bullish divergence as the price made a lower low, while the RSI made a higher low. I think a similar formation could occur this time. That would create a great buying opportunity as each price cycle bottom has. David Zanoni
COINBASE:BTCUSD
by Zman1175
EUR/USD: Still Stuck in the RangeEUR/USD has been pretty frustrating.... Since around June/July 2025, the EUR/USD has mostly been stuck in sideways price action. I was originally looking for a bigger move lower much earlier, but the market just has not given that clean breakdown yet. The biggest level I’m watching is still 1.1500 That area has been extremely important. It acted as resistance back in April 2025, then flipped into support, and every time price has tried to break below it, buyers have stepped back in. That said, I still think the larger structure is vulnerable. EUR/USD pushed above the 1.18 area, even stretched above 1.1950, but that move quickly failed. To me, that looked more like a stop run or false breakout than real bullish strength. Price kissed above that zone, trapped late buyers or cleared stops, and then came right back down toward 1.15000, this is what keeps me looking at the short side. On the weekly chart, momentum still does not look strong. MACD and the histogram continue to show signs of momentum fading. The market has been sideways for almost a year, but it has not built the kind of upside strength I would want to see if this were truly bullish. For now, the trade idea is simple: If EUR/USD retests 1.15000 and finally breaks it with conviction, I think the next downside area to watch is around 1.12000. DXY has been moving opposite to EUR/USD, and the chart actually looks cleaner to me. The big level there is 100. The dollar has tested that area several times and failed, but the structure still looks like it wants to try again. If DXY can finally break above 100, then I think 101–102 becomes realistic, maybe even 103 if momentum expands. That would support the bearish EUR/USD view. I also looked at GBP/USD briefly. It has a rising wedge structure that has been developing since early 2023, with some mild downside divergence. But I’m not trading pound-dollar right now. My main focus is EUR/USD and the USD Index. Overall, this is still a waiting game. EUR/USD has been consolidating for almost a year. These long ranges can be boring, but when they finally break, the move can be powerful. For me, the key levels are clear: EUR/USD below 1.15000 opens the door toward 1.12000. EUR/USD above 1.2000 invalidates the short idea. DXY above 100 would strengthen the bearish EUR/USD case. Until one of those levels confirms, I’m staying patient.
by InternalTraderNYC
Could we see another push higher for JNJWhile many believe there is a convincing top on JNJ at the 251 zone, which would indicate a much more meaningful correction below the 200 zone, evidence suggests that the 251 zone is more likely to be a lower degree, and that support in the 208 - 215 zone should hold. That said, from that support, Elliott Wave guidelines would suggest we look for another five-wave structure to the upside, in what would be a larger degree extended wave five. I base this on the following evidence: -Elliott wave guidelines suggest there should be bearish divergence between wave 3 and 5, and we should look for that divergence on a fractile basis to support the count. Keep in mind that the higher the timeframe of divergence, the more confirmation provided. That said, there is a lack of bearish weekly divergence between the December 15th 2025, weekly high at 215, and the March 2nd 2026, weekly high at 251, which would suggest that the 251 high is more likely not a wave 5 top, and instead a wave 3 top. Therefore, we would be looking for a pullback and one more high to the upside to create that weekly divergence. - While volume is one of the most simple indicators, it is often overlooked, which is a huge mistake. Volume is provided in real time and is not based on lagging information, like so many other indicators. It must be noted that approximately 90% of market volume is created by informed institutional activity. That said, when we look at the weekly volume coming down from the 251 high, it does not indicate a more meaningful correction. In fact, it is declining in a manner that would suggest declining interest in lower prices, which is a clue that the nearest support is more likely to hold. The nearest weekly support is in the 209 area. Therefore, I would look for the market to pivot in that zone of support. - Lastly, Elliott Wave guidelines also suggest that wave four pullbacks typically target the previous lower degree's wave four target zone, which the target of 209 is in. This further supports the case for a pullback to 209, where JNJ may pivot and head toward a new all-time high. If JNJ holds support and we see a push for one more all-time high to complete the higher degree impulse structure, where should we look to forecast the new all-time high? To answer that, we must look at the larger degree structure, and the lower next degree wave five structure we are likely currently in, which would suggest the 300% extension around 272 as a likely forecasted target for the top.
NYSE:JNJLong
by BlueLineTradingLLC
NAK at Daily BC as 1H Structure Starts Turning BearishAMEX:NAK is now trading around the $2.04 area , and the chart has pushed directly into the daily BC zone . The company’s investor page lists the stock on NYSE American under ticker NAK , and recent market data around April 22–23 showed price right around this level. That is the part that matters first: location . Price has reached a higher-timeframe reaction zone. That does not mean I want to short blindly just because it touched the box. It means I want the lower timeframe to start exposing weakness before I take the bearish idea seriously. And that is exactly what the 1H is starting to do. On the lower timeframe, RSI printed divergence as price traded into daily BC. On its own, that is not enough. Divergence is only a warning. The real shift came after price swept liquidity and then broke the swing low that caused that sweep with displacement . That is the key change. Now this is no longer just a chart sitting at resistance. Now it is a chart that reached a premium daily zone and started showing a lower-timeframe structural rollover inside that zone. That is why I am focused on the short side here. My read is simple: Daily BC gives the location 1H divergence shows momentum slowing Liquidity sweep clears the bait Displacement through the key swing low gives the actual bearish confirmation As long as buyers fail to reclaim control, this is not a chart I want to chase higher. This is a chart I want to monitor for short continuation from premium . The higher timeframe gave the area. The lower timeframe gave the shift. That is the whole idea. Bias : Bearish while price is reacting inside daily BC Focus : Short setups if lower-timeframe weakness remains intact Invalidation : Strong reclaim of the zone and loss of bearish 1H structure
AMEX:NAKShort
by SmellyTaz
SP500 - The Divergence OF a Decade 🚨 THE GREAT RECKONING: The AI Bubble is Screaming "Exit" 🚨 The charts don't lie, even when the market tries to. We are witnessing one of the most irrational extensions in financial history. Let’s look at the cold, hard facts of why this house of cards is about to fold. 📉 The Divergence of a Decade I’m looking at massive Bearish Divergence confirmed on both the 4H and the Weekly timeframes. While price action has been carving out higher highs, the RSI is consistently making lower highs. This is the ultimate "hidden" signal that the buying momentum is completely exhausted. In technical terms: Price: 📈 (Artificial pump) Momentum (RSI): 📉 (Fading fast) 💰 10 Trillion Dollars in 30 Days? Think about that number. The market has added $10 trillion in market cap in less than a month. How is that even fundamentally possible? It isn’t. We are currently trapped in a hyper-inflated AI Bubble that makes the Dot-com era look modest. This isn't organic growth; it's a vertical blow-off top fueled by pure FOMO and algorithmic insanity. 🎯 The Gameplan The masses are cheering for new highs, but we play by a different set of rules. Here is how we handle this: Rule #1: Trust the Divergence. It is the most reliable leading indicator of a trend reversal. It tells us everything we need to know about the internal health of this rally. Rule #2: Ignore the Noise. The media and the "permabulls" will give you a thousand reasons why "it's different this time." It never is. Rule #3: Patience is a Position. We don't chase. We wait for the breakdown. The larger the pump, the harder the dump. A major crash isn't just possible—it’s incoming. The setup is locked in. Now, we stay disciplined and wait for the gravity to kick in. Are you watching the exit, or waiting to be the liquidity? 📉🔥 #SPX500 #TradingStrategy #Bearish #AIDubble #MarketCrash #TechnicalAnalysis #Divergence
SP:SPXShort
by divergencekim
1
SP500 - MAJOR CRASH INCOMING 🚨 THE GREAT RECKONING: The AI Bubble is Screaming "Exit" 🚨 The charts don't lie, even when the market tries to. We are witnessing one of the most irrational extensions in financial history. Let’s look at the cold, hard facts of why this house of cards is about to fold. 📉 The Divergence of a Decade I’m looking at massive Bearish Divergence confirmed on both the 4H and the Weekly timeframes. While price action has been carving out higher highs, the RSI is consistently making lower highs. This is the ultimate "hidden" signal that the buying momentum is completely exhausted. In technical terms: Price: 📈 (Artificial pump) Momentum (RSI): 📉 (Fading fast) 💰 10 Trillion Dollars in 30 Days? Think about that number. The market has added $10 trillion in market cap in less than a month. How is that even fundamentally possible? It isn’t. We are currently trapped in a hyper-inflated AI Bubble that makes the Dot-com era look modest. This isn't organic growth; it's a vertical blow-off top fueled by pure FOMO and algorithmic insanity. 🎯 The Gameplan The masses are cheering for new highs, but we play by a different set of rules. Here is how we handle this: Rule #1: Trust the Divergence. It is the most reliable leading indicator of a trend reversal. It tells us everything we need to know about the internal health of this rally. Rule #2: Ignore the Noise. The media and the "permabulls" will give you a thousand reasons why "it's different this time." It never is. Rule #3: Patience is a Position. We don't chase. We wait for the breakdown. The larger the pump, the harder the dump. A major crash isn't just possible—it’s incoming. The setup is locked in. Now, we stay disciplined and wait for the gravity to kick in. Are you watching the exit, or waiting to be the liquidity? 📉🔥 #SPX500 #TradingStrategy #Bearish #AIDubble #MarketCrash #TechnicalAnalysis #Divergence
VANTAGE:SP500Short
by divergencekim
1
Lyft at Support Confluence – Educational BreakdownHello Friends, Welcome to RK_Chaarts, Today, we’re taking a look at the chart of LYFT, which is a great example of how multiple technical signals can align on a single chart. This is purely for Educational purposes. Lyft is sitting at a technically very interesting area. Where Elliott waves are suggesting Impulse ahead, Supporting by Hidden Bullish Divergence at same area, which increases probability of bounce from current levels and Volume profile is also suggesting POC as a support below current levels which is again a good sign for same bias. Elliott Wave structure, Volume Profile support, and Hidden Bullish Divergence across multiple timeframes are all converging toward the same conclusion, with Invalidation level as per Elliott Wave theory is 12.46, the next major move could be up, and it could be significant. Lets check them one by one Elliott Wave Structure: From the bottom of May 2023, which is life time low as per today, We have started impulse counts from there, Wave (1) rallied from $7.85 to the $20.85 which is Top of March 2024 in a clean 5-wave structure. A complex W-X-Y correction followed as Wave (2), dragged down to $9 – $10 which is Low of April 2025. Again followed by Wave (3) which made significant high of $ 25.54 which is Top of Nov 2025, and then followed by corrective wave (4) dragged down by 12.46 which is Low of March 2026. Now possibly we have started unfolding wave (5) upwards, which should go beyond high of wave (3) as per Elliott Wave theory. If our counts are going to be right, then low of wave (4) should not to be break, as per theory, so now we can say Invalidation level is $ 12.45 of this view. Volume Profile : Confirming the Support Zone The Volume Profile measured from the November 2025 high aligns perfectly with the Elliott Wave count: $13.30 (POC): The Point of Control. Most trading since the high has occurred here. This is the strongest magnet and support on the chart, as per POC aggressive buyers to defend this level. $12.47 (VAL): Low point below POC, which is Value area of volume on Lower side, this means Current last Support. Aligning with our Elliott wave Invalidation level. $19.07 (VAH): First real wall. Trapped sellers from the decline will exit here. A confirmed break above $19 would be a major bullish signal. Hidden Bullish Divergence on Weekly Timeframe This is what elevates this setup above an ordinary wave count. Hidden Bullish Divergence (HBD) has been identified on both the Weekly and Hourly timeframes simultaneously. Hidden Bullish Divergence occurs when price makes a Higher Low but the momentum indicator makes a Lower Low. Unlike regular divergence which signals reversal, HBD signals trend continuation during a pullback, it tells you the underlying trend is still bullish and the current weakness is a buying opportunity, not a breakdown. When HBD appears on two timeframes as far apart as Weekly and Hourly simultaneously, pointing in the same direction, it is a signal that deserves serious attention. Combined with the Wave (4) completion zone and Volume POC, the technical confluence here is genuinely compelling. Conclusion: When Elliott Wave Counts & Structure, Volume support, and Divergence all converge at the same level, it’s more than a single signal setup, it’s confluence. As long as 12.46 holds, the bias favors a significant move higher. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NASDAQ:LYFT
by RK_Chaarts
2
Sample of Classic Bullish ImpulseBeautiful textbook bullish impulse was spotted, so let me walk you through We can see bullish 5 waves sequence (white) on the chart All waves are easily spotted and have clear structure We have extended wave (3) white that consists of 5 sub-waves Look at RSI's highest peak on wave 3 yellow of (3) white (vertical line) it accurately follows the guideline so you can spot the wave 3 of (3) in the future by finding the highest point on RSI RSI clearly indicates waves (3) and (5) either as it didn't print higher top while the wave (5) surpassed the maximum of wave (3) This is called Bearish Divergence and it is a harbinger of cycle completion within the current impulse Another guideline is the trend channel composition it has been built through 3 points: the troughs of waves (2) and (4) and top of wave (3) The upside of the channel is the viable target for the wave (5)
NASDAQ:GOOGEducation
by aibek
ENA Flashed a Hidden Reversal Signal… Are You Too Late or Early? Yello Paradisers! Are you really going to ignore this early reversal signal after such a prolonged downtrend on #ENA, or are you positioning before the crowd wakes up? 💎#ENA has been in a clear downtrend, but we are now starting to see the first meaningful shift in momentum. A key early signal comes from the RSI, where a bullish divergence has formed, indicating that selling pressure is weakening even though the price has not fully reacted yet. 💎At the same time, price action developed a falling wedge structure during this extended decline. As you should know, falling wedges can act as reversal patterns, but only when they appear after a prolonged downtrend, which is exactly what we are seeing here. This significantly increases the probability of a meaningful move to the upside, especially when combined with momentum signals. 💎We already saw a strong breakout from this wedge, followed by a sharp, impulsive move upward. Right now, #ENA is in a pullback phase, but this pullback appears corrective rather than impulsive. The lack of strong bearish momentum suggests that this is likely a healthy retracement before another potential leg up. 💎Minor support sits around 0.0940, while the major support is located near 0.0700, which is also the low of the previous bullish swing. As long as the price holds above this major support, the bullish structure remains valid. On the upside, the minor resistance is around 0.1300, which aligns with the recent swing high, while the major resistance sits near 0.1900. 💎It is important to understand that we do not trade every falling wedge pattern blindly, as many of them fail. However, when this type of structure appears after a prolonged downtrend and aligns with supporting indicators like RSI divergence, it creates a much stronger setup with a favorable risk-to-reward profile. 💎The key question now is whether the market will confirm continuation with another push upward or trap impatient traders during this consolidation phase. This is where discipline and patience become critical. Paradisers, strive for consistency, not quick profits. Treat the market as a businessman, not as a gambler. MyCryptoParadise iFeel the success🌴
BYBIT:ENAUSDTLong
by MyCryptoParadise
NAS100: Bearish Flip After $27K Push — $26,865 Above EMA200█ STRUCTURE NAS100 at $26,865 with SHORT/Above/Bearish. The bullish anchor has finally cracked. NAS, which held bullish through every session for over a week while the others whipsawed, has flipped bearish after failing to hold above $27,000. Price pushed to $26,975 before a sharp rejection. MSS confirmed the bearish shift, and bearish BoS is now printing. EMA200 sits at $26,760 — $105 below. The MSS↑ candidate on the chart suggests bulls may try to reclaim, but the structural shift is notable precisely because NAS was the last holdout. █ KEY LEVELS Resistance: $26,900 (MSS↑ candidate) Resistance: $26,975 (swing high) Support: $26,760 (EMA200) Below: $26,650 / $26,500 █ CROSS-ASSET SCORECARD XAUUSD: ⚠️ LONG / Below / Bullish — $4,720 (conflict: bullish structure, $24 below EMA) BTCUSD: ⚠️ SHORT / Above / Bearish — $77,967 (conflict: bearish structure, $480 above EMA) EURUSD: ⚠️ LONG / Below / Bullish — 1.1704 (conflict: bullish structure, 26 pips below EMA) NAS100: ⚠️ SHORT / Above / Bearish — $26,865 (conflict: bearish structure, $105 above EMA) ALL FOUR ASSETS IN CONFLICT SIGNALS — A FIRST. For the first time in 6+ weeks of tracking, every single asset has structure and EMA200 position disagreeing. Gold and EUR are bullish below EMA200. BTC and NAS are bearish above EMA200. Nobody is fully aligned. This is a market in complete indecision. The pattern suggests a major directional move is imminent — when conflict resolves across all four assets simultaneously, the resulting move tends to be powerful. Watch which pair (Gold/EUR or BTC/NAS) resolves first — it will likely set the direction for the others. Not financial advice. For educational purposes only.
FX:NAS100
by SmartFlow2026
When Macro Stops Driving MarketsOver this period, a clear divergence has developed: Oil Spiked on geopolitical tensions and then retraced Meanwhile, equities have continued to trend higher But that transmission mechanism appears to be weakening. Even as oil has moved lower from recent highs, equities have continued to push higher- suggesting that markets are not responding to Macro inputs in a consistent or traditional way. What may be driving this shift: Retail participation has been more muted Systematic strategies have increased exposure following momentum signals Corporate buybacks remain a steady source of demand In other words price action appears to be more sensitive to flows and positioning rather than macro inputs alone Another factor potentially to this dynamic is index concentration With a significant portion of S&P 500 performance driven by relatively small group of AI-linked names, the index may be less sensitive to traditional macro inputs such as energy prices and inflation data. The question is no longer just what macro is doing, but whether markets are still responding to it in the same way
NYMEX:CL1!Education
by DanielForester_Trades