jntrade said:
Hi Amit,
I attached a graph of polaris with histogram at the bottom.
I marked an area far right with an arrow.
When prices go up Histogram declines and says it is Bearish divergence and it is strong signal.Is it that shows in the chart?
thanks
JN
Hi JnTrade,
Amit, sorry to hijack your thread. Just wanted to give my view on this (see testing my TA skills
).
coming to the point, JN, bearish Divergences are formed when prices touch new highs and MACD and Histrograms trace a low compared to the previous.
In case of this chart, there is nothing that can be said of Bearish Divergence ( the arrow mark you have put).
The reverse is the same for the Bullish Divergence. In fact, POLARIS is coming close to form a very good Bullish Divergence .
I am attaching the chart here. Hope this clears your doubts.
BTW: Polaris, has strong support at 100 levels and the immediate Resistance points are 125, 135, 145 and then 165 (not precisely i'm mentioning it here).
Wait for a trend change to enter...now its in my watch list
All comments on my analysis are most welcome ( at the end it will help me a lot).
Satya