So im not an super experienced trader as most here but been trying to follow along for a while. I came across this on my chart lately off BTC and 2-24- But couldn't figure out if a divergence is based off the Candles from the Algo being higher and lower opposite to the PA or the wicks from the PA being opposite. I attached a photo and wanted some insight.
Where Im getting lost at is point B's wick is shorter than that of point C's. but yet its candle is higher than point C on the Algo.
So my mind is getting scrambled from point A candle and wick being the lowest of them all and showing a nice divergence but B and C are throwing me off.
CoffeeShopCryptoi think you are getting confused because you like many other people are attempting to believe that the wick and price level of a heiken ashi candle...i think you are getting confused because you like many other people are attempting to believe that the wick and price level of a heiken ashi candle is relative to price. its not. Ill say this again The HA candles in the algo are just a representation of the RSI. NOT OF PRICE. Also when looking for divergences, the length of the wick is not relevant. It means nothing.
I do have to ask a question though out of curiosity so i can dispel it. Where did you get some info stating that the length of a wick of a candle has anything to do with a divergence? Id like to know who on YT is giving off that false info.
In looking at this pic, it seems you chose point B but in price action, point B is not a point at all. Remove it from your analysis and then take another look at your setup.
To sum it up. Divergences are NOT based on the candles of hte algo. they are based on the placement of highs and lows of price FIRST, and in this case you need to see if the placement matches or doesnt match the placement of the highs and lows of the RSIShow more12 months ago
CoffeeShopCryptoAlso read my last comment here before you try taking a long just because you see a bullish divergence. You guys keep missing the most important...Also read my last comment here before you try taking a long just because you see a bullish divergence. You guys keep missing the most important part.