Types Of Divergences In Technical Analysis

Divergence is the difference in actions between an Oscillating indicator such as RSI, MACD, CCI, etc. and the price action of the underlying financial instrument. Mainly there are two types of divergence i.e, Regular divergence and Hidden divergence. Regular divergence occurs when the price action makes higher-highs or lower-lows. This shows a weak spot in the price action which indicates that a possible trend reversal could take place, though it doesn’t indicate when this will occur. Regular divergence can be either bullish or bearish.
Bullish Divergence and Bearish Divergence
The bullish divergence happens in a down-trend when the price action prints lower-lows that are not confirmed by the oscillating indicator. This shows a weakness in the down-trend since selling is less urgent or buyers are emerging. Bearish divergence occurs in an up-trend when the price action makes higher-highs that are not confirmed by the oscillating indicator. This shows a weakness in the uptrend since buying is less intense and selling or profit taking is increasing.
Hidden Divergence: Bullish Or Bearish
Hidden divergence occurs when the oscillator makes a higher-high of lower-low while the price action doesn’t. It indicates that there is still strength in the current trend which will resume. Like with regular divergence, hidden divergence can also be bullish or bearish.
Bullish Hidden Divergence happens during a correction in the uptrend when the oscillator takes a higher-high while the price action doesn’t. This indicates that there is strength in the uptrend and it can be expected to resume. Bearish Hidden Divergence happens during a reaction in a down-trend when the oscillator makes a lower low while the price action doesn’t. . This shows that the selling has not diminished and that down trend is still strong.
Divergence Trading Strategy
Divergence trading strategy demands the trader to pay attention not only in the indicator, but also to price itself. According to Intraday sure shot stock cash tips of ProfitAim, traders are not advised to use trading indicators without consulting price. The benefit of hidden divergences is the higher odds of success, provided that it finds trades through the trend and not against it. Bullish hidden divergences show up oversold regions in an uptrend. However, it is advised that instead of employing a fixed oscillator value to determine if prices are oversold, traders can use the previous low of the oscillator.

Maximum Trading With Technical Analysis

Stock market trading seems lucrative to many traders. The key to achieve success in stock market trading is to follow some strategy and trade accordingly. There is also another option of trading on the basis of Stock Cash Tips and Sure shot intraday Stock Option Tips from expert technical analysts.
The traders can learn technical analysis, which is an important tool to study and forecast price movements, during the trading sessions. In technical analysis the graphs or the charts of the price movements versus time are plotted. The time scale of the charts is user dependent. The time scale of the charts can be minutes, 1-hour, 1-day, 1-week or year. The time scale selection is based on the period of trading like intraday or short term trading and the type of trader. Also, the charts are of different forms like line charts/ candlestick charts. The type of chart also depends on the type of analysis, the analyst wants to do.
Technical indicators Used by Technical Analysts
Technical analysis is a whole in-depth field having a number of indicators. Some of the commonly used indicators are moving averages (MA), exponential moving averages (EMA), MACD and RSI. There are many other indicators, which can be used based upon the expertise of the concerned technical analyst. These indicators are used to generate the buy and the sell signals and to determine the trend of the market. The indicators such as moving averages (MAs) are drawn with various periods.
In general the strategy utilized, is to draw moving averages (MAs) of two different periods and to initiate the trade at the cross over of the 2 moving averages. The crossover of the moving averages (MAs) usually indicates the trend reversal and an appropriate position can be taken at this event. In the case of exponential moving averages (EMAs), the moving average is calculated by applying suitable weights to the price levels.
One can also use the indicators like RSI and MACD together to find the trend reversals. RSI takes a value between 0 and 100. The value of RSI greater than 70 indicates the overbought condition. Similarly, if the value of RSI is below 30, it represents the oversold condition. In the conditions of overbought and oversold value of RSI, there is a high probability of trend reversals. Similar to the RSI, the MACD indicator also indicates the trend reversal conditions. MACD stands for Moving average convergence and divergence. Thus, when both the RSI and MACD indicate the trend reversal, there will be a high probability of the trend reversal. Thus, this strategy, utilizing both the MACD and RSI can be effectively used to anticipate the trend reversal.
Technical analysis is an extremely wide field and it takes a considerable time and effort to gain mastery over this subject. So if a beginner is not able to perform the technical analysis himself, he can take the help of some advisory firm which provide stock market tips for trading. ProfitAim Research is one such best advisory firm, which provide 100 accurate sure shot Stock Cash Tips and Stock Option Tips, based on the advanced technical analysis done.

Magnetizing The Investors Towards

The story signifies the importance of SIP calculator in the investing process, because the amount of SIP decides the corpus (the main aim of investing). Especially in the online investing the role of an SIP calculator is of vital importance. The investor advances towards being free in order to make the optimal use of their money. SIP calculator acts as a catalyst in aggravating the process investment through proper channel.

Features of an SIP calculator:-

There are a lot of features which motivates an online investor to use SIP calculator. A few amongst them are stated below:

Easy to use:

SIP calculator is an easy tool to operate on. The user-friendly approach is the striking feature of the tool. Providing an environment of smooth functioning and quick calculations, an SIP calculator in India is making online investments attain new heights with each passing day. The main reason of the increasing inclination towards online investment is the handy tool (SIP calculator), which ease out the complex calculations manifolds.

Using CAGR:

SIP calculator uses the formula of CAGR (Compound Annual Growth Rate) to calculate the returns. CAGR is the most widely accepted concept for the growth calculation of investment over a period extending one year. The calculation of CAGR is very complex and not beyond the grasping power of non-financial people. It is a mind wrecking concept and takes time to understand. But you need not worry. The CAGR calculation is simplified with the help of SIP return calculator. Paving the way for quick and easy calculations, SIP return calculator has become a defining point of online investment.

Targeting accuracy:

The goal of an SIP calculator is to provide results that are 100% accurate. But, it works on the inputs that are fed to it. Any mistake in the input data leads to an erroneous result. Otherwise, the result shows the exact and accurate outcome without the mistake of a decimal place. A perfection of that level is surely a strong feature of SIP return calculator.

How An Accountant Can Help With Your Retirement Planning

If you are in your thirties or forties, it is often difficult to envisage retirement. But, it is critical to consider that the longer you can save for retirement, the lower the amounts you will need to set aside.

Through retirement planning, you can make your financial resources available for the rest of your life. No matter how long you live, your financial plan by a tax accountant in Maroubra makes sure that you are not wiped out by medical or long-term care expenses. So, it is mandatory to get guidance from trained professionals.

What a Tax Accountant Can Do for You?

Wondering how a tax accountant can assist you in retirement planning? Well, here we have listed a few examples of services offered by the best accountant.

Asset Management

During the years of retirement, you will not have a stable job to earn. So, exercising asset management is a must to budget, maintain and protect your assets from losses. There are so many different ways through which you can lose your assets,

– Unwise investments in stocks
– Star-ups
– Real estate
– Thefts by your own relatives and
– Bankruptcies

Your efforts in asset management will become only better when you shake hands with the leading accountant in Maroubra. They make your asset management more cost-efficient and results-effective. They have the ability and qualification to take care of your assets and ensure that you will not run out of financial resources for the rest of your retirement.