The Regular Divergence (1) -- Bullish Divergence

 Stock price is lower low, but indicator is higher low. This divergence can be a trading opportunity.

Regular divergence, price and stochastic

Tips:

• This is forex, not a stock. But the tips should apply as well.
• 2014 apr 28, price and stochastic have divergence.
• Stochastic is to value price momentum. Use 8,3,3 as the parameter can wipe out some market noise.
• The divergence is a regular divergence. Over 200 ma, should have bias of doing uptrend. Hence, for regular divergence, should only trade when price is lower low, but indicators is higher low.
• If below 200 ma, should be reverse, which is for regular divergence, should only trade when price is higher high, but indicator is lower high.
• The price also dropped on 50 ma, more probable to bounce back.
• Stochastic works only for a range price move. For strong trend, not working. Here the value is about 20, and not in a strong trend swing, means oversold. More probable to bounce back.
• There is also a horizontal support below the price.
• Over all these, a strong buy hint is here.

 Zoom in:

RSI divergence

• The arrows show RSI divergence.
• Price is lower low, but RSI indicator is higher low. One factor to long it.
• The price hit 200 ma on 2019 oct 2, more chance to bounce back.

MACD divergence

• The arrows show MACD divergence.
• Price is lower low or almost same price, but MACD indicator is higher low. One factor to long it.
• Here the MACD divergence is double divergence. That means both MACD lines and MACD histograms are divergence.
• The price falls below 200 ma on 2018 dec 26 or so, but the falling momentum stops. Can see a morning star here.  More chance to bounce back after the price climb up 200 ma again.