#technique analysis

Stock price and indicator have hidden divergence. This maybe means the price will extend the trend.

Tips:

This is forex, not a stock. But the tips should apply as well.

2014 Jun 6, price and stochastic have a hidden divergence.

Stochastic is to value price momentum. Also can be treated as if stock overbought or oversold.

The divergence is a hidden divergence. A hidden divergence is for a price higher lower, but indicators are lower low. Or for a price lower high but indicators are higher high.

The hidden divergence means the price will continue the trend.

Here the trend is uptrend, means probably price will go up.

2014 jun 6, stochastic showed oversold, possibly price bounce back.

The price also dropped almost on 50 ma, possibly price bounce back.

It is below 200 ma, should bias on downtrend. But here is a buy hint, so can buy , but not a very strong one.

Stock price is lower low, but indicator is higher low. This divergence can be a trading opportunity.

Tips:

This is forex, not a stock. But the tips should apply as well.

2014 apr 28, price and stochastic have divergence.

Stochastic is to value price momentum. Use 8,3,3 as the parameter can wipe out some market noise.

The divergence is a regular divergence. Over 200 ma, should have bias of doing uptrend. Hence, for regular divergence, should only trade when price is lower low, but indicators is higher low.

If below 200 ma, should be reverse, which is for regular divergence, should only trade when price is higher high, but indicator is lower high.

The price also dropped on 50 ma, more probable to bounce back.

Stochastic works only for a range price move. For strong trend, not working. Here the value is about 20, and not in a strong trend swing, means oversold. More probable to bounce back.

There is also a horizontal support below the price.

Over all these, a strong buy hint is here.