failure bullish divergence

hello ,

attached is chart of adani enterprises .

which shows failure bullish divergence in share price vs rsi

your suggestions are wellcome

thnx

Hi,

I guess its not a failer pattern. It will be activated once trendline on price chart is broken. RSI is giving warning that bears r losing command n once price cross that dn sloping line, you can go long

johnny

Something looks very wrong here ...

In a downtrend, you look for divergence using the bottoms; your trend lines are across tops.

BTW: what happened to the auto resized display of large images?

Hi,

Actually Fail div.. means the indicator making higher low n price making lower low. But, these are defaults. After that lots of patterns have been discovered.

Agree that this does not fall in fail pattern but, this is also noticed in past that this kind of movement n diver.. gives explosive moves. I guess if u dig a bit then u will find the same.

johnny

Johnny,

As plotted in the chart, price making lower highs and indicator making higher highs indicates a classical reverse divergence.

No comment on "lots of patterns have been discovered", or "explosive moves".

heheheheheheheheheh

well a glass of water is there. One will say that is half filled another may say that is half empty. btw both r right.

johnny

Not sure anymore if the same glass is being discussed; forget the spirit in it.

hello ,

the chart was posted by me .

i looked at chart of nifty daily and had three divergence wrt macd ,rsi and money flow index

it had a bearish divergence by the way price making new highs and indicators not confirming them

.

all your comments welcome

thnx

sumit

Rsi remained in oversold region for more than 5 bars, which indicates down trend may continue. In this case divergence should be ignored.
Thanks!

It does seem like a Divergence failure, but is no longer relevant...since July, RSI and price are moving in tandem!