Goldtent TA Paradise

NOVO Bearish Divergence

1. Marty says:

   October 17, 2017 - 7:03 am at 7:03 am

   Bikoo99 , this might be worth a read.
   Below is from Investpedia – since NVO.V is trending strongly it is worth noting oscillators can be misleading.

   Misinterpreting Divergence

   Trading signals derived from divergence that are based on oscillator indicators can be difficult to read, and they are sometimes misleading. When the market is in a strong trend in either direction, oscillators do not function well. Any signs of divergence during a strong trend would be ambiguous at best. Divergence is best suited for confirming market moves and should be used in conjunction with other technical indicators and fundamental analysis.

   Read more: Divergence http://www.investopedia.com/terms/d/divergence.asp#ixzz4vlJ3YMFo
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   • Fullgoldcrown says:

     October 17, 2017 - 8:36 am at 8:36 am

     Good point Marty….thanks…agree in strong trends divergences will always appear and often mislead

2. Marty says:

   October 17, 2017 - 7:34 am at 7:34 am

   If you look at the weekly chart, it doesn´t have a RSI divergence. When both the daily and weekly time frames show a divergence it tends to be more reliable for such a move in opposite direction. IMHO using support levels to add might be a good way to get in if one hasn´t already.

   • Marty says:

     October 17, 2017 - 7:42 am at 7:42 am

     Here is an example of negative divergences on both the daily and weekly. http://cdn.ceo.ca/1cubqtj-Screen%20shot%202017-10-17%20at%201.37.37%20PM.png

3. Plunger says:

   October 18, 2017 - 12:23 pm at 12:23 pm

   Here is my take on this divergence: Yes, it does indicate slower momentum, however it one shouldn’t conclude that it will cap the move in price just yet. Often it takes 3-4 cycles of lower RSI to finally stop a price rise. This is what I expect in Novo. However yes, we can expect a 50% drawdown at some point ahead.