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Exaggerateddivergence

📊 3 Types Of DivergenceRSI (Relative Strength Index) is a commonly used technical indicator in trading that helps identify overbought and oversold conditions in the market. It measures the strength and speed of price movements and provides traders with valuable insights into potential trend reversals. When analyzing RSI, three types of divergences can be observed: regular, hidden, and exaggerated divergences. 📍Regular Divergence: Regular divergence occurs when the price and the RSI indicator move in opposite directions. There are two types of regular divergences: bullish and bearish. 📍Hidden Divergence: Hidden divergence refers to a situation where the price and the RSI move in the same direction, but the RSI signals a potential trend continuation rather than a reversal. 📍Exaggerated Divergence: Exaggerated divergence is a type of divergence where the RSI signal extends beyond the typical overbought or oversold levels. It suggests that the price is showing extreme momentum and could potentially experience a significant reversal. In summary, regular, hidden, and exaggerated divergences in RSI analysis provide traders with valuable insights into potential trend reversals and continuations. By understanding these divergences, traders can make more informed decisions regarding their trading strategies and positions in the market. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
BTC - RETRACEMENT OCCURREDwe are exactly on the 21MA daily. Many are scared now, but until we hold this level, we can consider the movement as a normal and healthy retracement and the uptrend can continue. It was too violent to be "real". Also, long/short ratio (adjusted for the holders) reached levels lower than those during the 13th of March due to Covid today. Too much. I still think that a retest of the 12k-14k region will occur, but not immediately, not in November. I believe we still have some upward profit to squeeze. As usual, I am operating exactly as I write. If you follow, ofc set a tight stop loss, but let some freedom of move (16.6k in my case) as this is a risky trade. No risk no gain. But calculated risk, always.
BITFINEX:BTCUSDLONGSLong
by edutradinguru
Bitcon Bearish Exaggerated Divergence?Now seeing bitcoin double toping, it looks like we could be seeing a divergence of a regular or a exaggerated divergence. Now this doesn't effect bitcoin in the long run, but shows that the beat down shorts compared to longs looks like a long squeeze might be underway. News -An investment firm increased its bitcoin hold over 16k bitcoin TA -Now the bearish exaggerated divergence can be seen with the RSI slowly dropping as the price of bitcoin rises, so could be a perfect time to create a short. If you are long sL would be around 10801 -MACD is getting tight again looking like a turn over could happen -Theres high sell volume compared to buy volume, which could explain the trend in the rsi and tighting of the MACD. It doesn't explain the price action besides getting some extra longs before the dump. -We do have our support at 10643-10533. After that I will have to see past supports and redraw my chart. -DXY is holding its support and could be double/triple bottoming. -Grayscale is on the rise and RIOT is on downtrend, but if btc drops a target of RIOT is at 1.60ish or low 1.80. -Ethereum is just going sideways, DeFi hype done? -YFI is dropping cause sell the news on coinbase -PokaDot looks like a cross over on the MACD and if btc dumps could see prices head towards 4.5-4.6 Final thoughts -Its best to look for the volumes in btc to pickup on the buy side, yet the trend upwards with rsi dumping looks like a correction is coming soon.
COINBASE:BTCUSDLong
by nathanielx9
1