Thanks, nice thread!
"ok, u're not the first one who asked that question. this HAS been a good question and still is.
80% of the time, a bearish/bullish (classic) divergence is always followed by a bullish (hidden) divergence. that's a fact.
i have came with a solution to where and when a divergence breaks. this might be a bit of a lot of read and maybe a bit hard to understand, but bear with me.
one of the main reasons i use CCI30 is just for that. on the same chart u have, u placed the CCI TL incorrectly, go back and place that TL on the peaks of CCI (highs). the bearish divergence was soon followed by a bullish hidden divergence:
bearish divergence playout IF:
1) m30's 50ema is taken out
2) we close at a lower price of that where the other lower bottom on MACD is taken out.
3) CCI30 (and most importantly) closes below the -100 line.
the third part (to me) is the most important. unlike most indicators, CCI resembles the typical price (u can find more info about CCI ont he net). close below/above resistance lines doesn't necessarily mean oversold/overbought levels, but rather it means BREAKOUT. as i'm typing this, CCI30 on the m30 chart has pierced throught the -100 line and is just above 50ema (i took some partial profit at the open of this new m30 candle). i always confirm with m30, but 1h is even better for confirmation. once 1h cci30 closes below the -100 line, this will tank really nice.
bearish divergence failure (on the same chart u have):
1) if cci30 breaks that descending TL to the upside
2) after breaking to he upside, CCI has to close above the 100 line.
3) we get a higher high on CCI or MACD, but here's the trick, that could also mean a classic bearish divergence backed by hidden bearish IFFF price fails to make a higher high.
confusing right? but trust me, the world of divergence is humungous, and mastering it is not a simple task, but once u do, it's VERY powerful. getting tops and bottoms would be a breeze "
I'm long from 157.6 with TP @ 163, will buy dips.
Today we had higher high, higher low, higher close and daily close is lower than DP.
BREEZE!! Thats right.. and we have Divergence King Back.. Trading will be real Good.. hello Bro (Lil Moe)..
Hello , there. Hope everything is fine and well with you and family..(Gaza.) Welcome Back.. and dont go anywhere any more!!
Trouble maker was MALCOLMB, and i am the Victim.. He is keeping a daily count of my pips... its all good.
Just a heads up.. you probably know. we cant play both sides of the market anymore.unless you have an account from UK.. HEDGING IS BANNED!!
Hmm everyone is happy to have the divergence master back..but one thing to ring in ur head is u are trading at ur own risk....GJ is back up i am not thinking of short again so as the bias changed i am bull now...
Now it should not go below 156.63.. Imo
We have bullish divergence on 1 HR .. 15M.. by the way.. should take us to 158.58 minimun..
After Today I thought I wont post anymore.. but cant help it..I love Trading!!
I got introduced to the Concept of Divergence through LIL MOE.. but he uses CCI.. I use RSI. from now spotting Divergence will be Fun..
Daily and weekly pivot today are the same 157.34
lots'of resistance on top..
for longs.. you shoud buy lower the last entry at 157.80...
now.. we may bounce from here down to 153 or even lower...
BUY LOWER OR sELL FROM HIGH..whichever comes first.
I closed my long trade @ 158.39, will buy at lower prices.
If you open Monthly chart, you 'll see that we are facing Monthly Gann resistance on GY and GU, same with UY
on weekly we have 50 ema on GU and GY..
Usually we get a nice bounce from these levels on daily equial to FIBs 382 first down to Fibs 62.
I know that we are in some "buying" shopping spree in this momnet, just to proove that there is no recesion at all.. but.. look.. S&P and DOW are still on same level Topping for a month there...
to break that levels on indexes and on pound pairs.. we need a deep breath, means.. Fibs 382 or even Fibs 618 on scale from 118 to 160
that is usual thing.. how market works. now the other thing is if SomeBody make a decition to make another Shopping on our market and spend his fresh printed papers..
If we take yesterday Low today.. then 153 down to 148 is possible.. but to not make a calls, just plot your fibs and play level by level..
that is my view.. Im not seeing Longs from here as we MAY reached TOP.. for now...
p.s. after the retrace.. the way to 168-187 is open...
I am in agreement with you and am getting frustrated , seems every dip on the ES they just buy . GU daily looks set to be breaking down , but it now seems buy dips. Mind you we did not break Fridays high today YET
ooo yeah... she Behave AGAIN...
see. what I figured last few weeks/month is that actualy recesion is a mater of declaration.. see. we declare that we are not in reccesion anymore.. and everybody are happy.. Market rally, reports excellent, numbers the best in last 2Y.. realestates, building industries, Banks in shape as never before..everything is fine...
wasting our time and patience again.. and YES it is frustrating..
I agree.. but .. im on mission too..
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