The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Today at 1:30 am by xmart

» අනං මනං! #/+?.<>
Today at 12:27 am by Yin-Yang

» Will YOU VOTE for ME if I run for SL PRESIDENCY?
Yesterday at 1:13 pm by CK

» Thread for News on Local and Foreign Politics
Yesterday at 8:22 am by ruwan326

» විකුණුම්කරු
Yesterday at 1:11 am by The Invisible

» *කොට්ටේ තරණය කිරීම*
Fri Nov 16, 2018 7:55 pm by Ethical Trader

» Thread for News on CSE and SL Economy
Fri Nov 16, 2018 3:13 pm by The Invisible

» Dividend Announcement
Thu Nov 15, 2018 9:06 pm by nihal123

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Wed Nov 14, 2018 10:50 pm by pjrngroup

» Thread for News on International Markets
Wed Nov 14, 2018 9:26 am by The Invisible

» DIPD.N0000 (Dipped Products)
Wed Nov 14, 2018 8:48 am by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Wed Nov 14, 2018 8:46 am by The Invisible

» TAFL - Three Acre Farms
Wed Nov 14, 2018 8:44 am by The Invisible

» RCL - Royal Ceramics
Wed Nov 14, 2018 8:42 am by The Invisible

» HAYL.N0000 Hayleys PLC
Wed Nov 14, 2018 8:38 am by The Invisible

» How to trade Stock profitably?
Tue Nov 13, 2018 1:25 pm by indramal

» What are investing methods in Sri Lanka?
Tue Nov 13, 2018 8:09 am by indramal

» Thread for General News Local/Foreign
Mon Nov 12, 2018 9:27 am by serene

» Anybody invest New York or Landon Stock Exchange?
Sat Nov 10, 2018 10:23 am by කිත්සිරි ද සිල්වා

» JKH.N0000
Fri Nov 09, 2018 12:19 pm by ruwan326

» HAYC - Haycarb
Fri Nov 09, 2018 12:00 pm by The Invisible

» WATA - Watawala
Fri Nov 09, 2018 11:52 am by The Invisible

» AAIC.N0000
Fri Nov 09, 2018 11:40 am by The Invisible

» Asian markets rally as investors see positive in US gridlock
Fri Nov 09, 2018 9:32 am by serene

» CSE RISE , RIDING ETHICALLY
Wed Nov 07, 2018 7:23 am by pjrngroup

» Constitutional Crisis – close to $ 100mn flees stock/bond markets last week
Tue Nov 06, 2018 8:08 pm by serene

» HHL.N0000 ( Hemas Holdings PLC)
Tue Nov 06, 2018 10:13 am by The Invisible

» Weldone Serene for 4000 + posts
Tue Nov 06, 2018 9:14 am by serene

» Asiri Hospitals PLC - ASIR
Mon Nov 05, 2018 1:28 pm by The Invisible

» Flying is the Safest mode of Transport
Sat Nov 03, 2018 10:14 am by කිත්සිරි ද සිල්වා

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Fri Nov 02, 2018 9:15 pm by Brave Heart

» What MOTTOs/PRINCIPLEs do YOU follow in LIFE ?
Thu Nov 01, 2018 5:44 pm by Seyon

» LDEV - Lankem Developments
Thu Nov 01, 2018 3:53 pm by The Invisible

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 01, 2018 2:13 pm by The Invisible

» MTD Walkers (KAPI)
Thu Nov 01, 2018 1:24 pm by The Invisible

» SERV - The Kingsbury
Thu Nov 01, 2018 11:42 am by The Invisible

» LFIN - LB Finance
Thu Nov 01, 2018 11:33 am by The Invisible

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Thu Nov 01, 2018 11:26 am by The Invisible

» Sri Lanka jumps 11 places to 100th rank in World Bank’s Doing Business index
Thu Nov 01, 2018 11:22 am by The Invisible

» Banking Sector
Thu Nov 01, 2018 11:20 am by The Invisible

» All Share index crosses 6,000 points
Thu Nov 01, 2018 9:50 am by Brave Heart

» Asian Hotels and Properties September net down 48-pct
Thu Nov 01, 2018 9:47 am by Brave Heart

» Sri Lanka rupee weakens; stocks rally slows
Thu Nov 01, 2018 9:43 am by Brave Heart

» TJL.N0000 (Textured Jersey Lanka PLC.)
Wed Oct 31, 2018 8:57 pm by PANTOMATH

» Whats ailing Sri Lanka ? Why we are what we are!
Wed Oct 31, 2018 7:37 pm by Ethical Trader

» Sri Lankan rivals tempt defectors to swing crisis
Wed Oct 31, 2018 11:11 am by The Invisible

» Sri Lanka’s Piramal Glass in Sept quarter loss as costs rise
Wed Oct 31, 2018 11:06 am by The Invisible

» Sri Lanka President could dissolve parliament if interim budget is defeated: Wijedasa
Wed Oct 31, 2018 11:04 am by The Invisible

» Sri Lanka political crisis hikes debt rollover risk: Fitch
Wed Oct 31, 2018 11:01 am by The Invisible

» Sri Lankan political standoff could threaten reforms: S&P Ratings
Wed Oct 31, 2018 10:59 am by The Invisible

November 2018
SunMonTueWedThuFriSat
    123
45678910
11121314151617
18192021222324
252627282930 

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Page 1 of 2 1, 2  Next

Go down

‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by NC` on Tue Sep 08, 2015 6:44 pm

http://www.marketwatch.com/story/bearish-divergence-is-warning-investors-not-to-buy-the-dip-in-the-stock-market-2015-09-04

A chart signal that warns you not to buy can be just as useful as one that warns you it’s time to sell. Bearish divergences don’t necessarily suggest investors should sell, but they do warn that when a breakdown in price does occur, they should not fight it. The pattern now indicates the index could fall a lot further before the opposite “bullish divergence” appears.
avatar
NC`
Top contributor
Top contributor

Posts : 163
Join date : 2014-09-27

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by smallville on Tue Sep 08, 2015 7:49 pm

Good one...

S&P 500 may fall near 1400-1500 as the first support.. If macro economies are worse at their levels, the more deeper the steep could be..

We should apply same for ASI as well and check their levels..

_________________
I take risks as a Trader and I select stocks based on Tech and daily Cash in/out. Therefore, my methods may not suit u.. so DYO analysis before making any decisions.
avatar
smallville
Top contributor
Top contributor

Posts : 1744
Join date : 2014-02-23
Location : Trying to figure out..

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by pathfinder on Tue Sep 08, 2015 8:03 pm

Thanks NC for sharing.
avatar
pathfinder
Top contributor
Top contributor

Posts : 1334
Join date : 2014-02-23
Age : 37

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by slstock on Wed Sep 09, 2015 4:36 pm

Thank you. Let see the accuracy of the prediction in short term?

Presently CSE does not have any issue as such.

_________________
Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
Please read : http://forum.lankaninvestor.com/t1548-important-warning-and-message
---------
avatar
slstock
Veteran
Veteran

Posts : 5390
Join date : 2014-06-12

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by Hybrid on Wed Sep 09, 2015 5:17 pm

Looks like many factors are making a composite impact on our CSE!

The Elections of course, the indecision in selecting the Ministers and agreeing on a National Govrnment, the global markets falling.

Now we have on our hands the "Blood Moon" on the 28th of Sept., Rise of the Japaneese stocks, increase in the refugee crisis, free floating USD/LKR, production overcapacity in China.

What can we make of this scenario?

Let's hope that JKH, COMB, HNB, DIAL, NEST makes a comeback soon.
avatar
Hybrid

Posts : 745
Join date : 2015-02-03
Location : Colombo

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by HUNTER on Wed Sep 09, 2015 9:49 pm

There is no apparent Bearish divergence in CSE right now.

AND;

I am planning to have a dip in the dip this time very soon.


(BTW: Thanks NC for the post +)
avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by malanp on Thu Sep 10, 2015 9:30 am

HUNTER wrote:There is no apparent Bearish divergence in CSE right now.

AND;

I am planning to have a dip in the dip this time very soon.


(BTW: Thanks NC for the post +)

If you look at charts, it will not show a Bearish Divergence, however, fundamentally still there is a possibility that, prices might come down later after short term prices up, or get stagnated for a while..

That amounts to a technical Bearish Divergence..


Last edited by malanp on Thu Sep 10, 2015 1:56 pm; edited 2 times in total

malanp

Posts : 426
Join date : 2014-03-04

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by sashimaal on Thu Sep 10, 2015 10:06 am

Thanks NC for the article and SLS/Hunter/Malan for explaining that CSE doesn't have a Bearish Divergence. +
avatar
sashimaal
Top contributor
Top contributor

Posts : 5691
Join date : 2014-02-28

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by mymoney on Thu Sep 10, 2015 11:45 am

Is divergence always a trusted indicator ?, Bellow CIND 5 year weekly char shows a  
bearish divergence in RSI and MACD also, But I don't think CIND is going to crash  Surprised


mymoney

Posts : 493
Join date : 2014-08-06

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by HUNTER on Thu Sep 10, 2015 12:35 pm

mymoney wrote:Is divergence always a trusted indicator ?, Bellow CIND 5 year weekly char shows a  
bearish divergence in RSI and MACD also, But I don't think CIND is going to crash  Surprised


As I have observed, B.D. (Or Bullish Divergence) does not work always in daily charts in CSE. Probably work in weekly charts (I have not checked though).
avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by Backstage on Thu Sep 10, 2015 12:43 pm

Please keep discussion going, much appreciated.
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by Nuinth on Thu Sep 10, 2015 1:02 pm

Nice discussion, keep it up guys.

Nuinth
Top contributor
Top contributor

Posts : 551
Join date : 2014-02-28
Location : Universe

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by HUNTER on Thu Sep 10, 2015 1:52 pm

Had a look at the weekly ASI.

As I noticed,

There is no Bearish Divergence in ASI right now.
There has been a Bullish Divergence at the end of 2008 and a Bearish D. at the end of 2010 which would have worked very well.

There has been a Bearish D at the end of 2014 but has not been very effective.
That could mean CSE is has been very stable during the very recent past (and still).

Here is the chart.
(Please note that different parties can interpret these differently; I love to hear other views)

avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by NC` on Thu Sep 10, 2015 2:54 pm

Seems some're get misunderstood.. Don't get mess this with CSE. I've notice this article recently, and I shared for to improve the knowledge and understanding of Technical readings.. (Many are known this divergence patterns, but need to remind these basic understandings time to time)
However, good discussion is going... Very Happy
And Hunter explained ASI with a chart.. Thanx for it.
There was a divergence of ASI, but now divergence has break.. I'll explain this at evening, when I got a time... Very Happy
avatar
NC`
Top contributor
Top contributor

Posts : 163
Join date : 2014-09-27

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by NC` on Thu Sep 10, 2015 5:44 pm

Bearish divergences and bullish divergences can be identified in momentum indicators, which measure the rise or fall in price, or in other words strength of the trend.
Trend means series of higher highs (HH) or lower lows (LL). Divergences are hard to identify when ranging or in accumulation or some times not at all.
Trend is like a rubber ball which bump when it on floor. At each time it hits on floor(resistant) it waste some energy so at next time, it'll not make a new high and at each time it reduce the height. Same in a stock trend, at each high ( hit resistant) selling pressure rise and buying pressure reduce. At each high sellers are rush to book profit and buyers interest get lower as price moves up. So, latter it forms double tops, triple tops (Reversal patterns) etc.. Such as rubber ball stops it bumps after energy is gone.
Divergences occurs when the momentum get reduces which means the rate of climb or the strength of the trend.
However, there're certain principles need to know when using indicators. Most important thing is to know is chart it self is the Boss. (which can be see by your naked eye without any indicators). Indicator is Assistant. So keep in your mind " Do not keep assistant as your boss". So, do not take decisions based on indicators.
Divergence is something as see as "yellow colour" light in traffic signal light. "Yellow colour" say signal that "Get ready". Same in here, divergence say get ready for any thing, but we don't know which colour next it take by the master chart. Sometimes might be green again or Red. So, divergences are taken as warning signals.
avatar
NC`
Top contributor
Top contributor

Posts : 163
Join date : 2014-09-27

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by NC` on Thu Sep 10, 2015 6:18 pm

Thanx Hunter... And Hunter has explained, and I agree with him. At this moment we cannot indentify divergence in ASI. This's just addition to his graph.

And do not forget indicator is just assistant. Do not take decision based on assistant and donot get messed all using indicators, bcz chart may one thing and indicator say another thing, But most important is the chart it self. Indicator is just assistant.
(compare those with trending stocks all time (their past) and you may understand how they behave)...
Very Happy
avatar
NC`
Top contributor
Top contributor

Posts : 163
Join date : 2014-09-27

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by 007 on Thu Sep 10, 2015 8:10 pm

Thanks NC and Hunter for a thought full education
avatar
007

Posts : 159
Join date : 2014-11-29

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by smallville on Thu Sep 10, 2015 8:27 pm

To have more accuracy, we need to consult the Weekly Charts not daily charts..

_________________
I take risks as a Trader and I select stocks based on Tech and daily Cash in/out. Therefore, my methods may not suit u.. so DYO analysis before making any decisions.
avatar
smallville
Top contributor
Top contributor

Posts : 1744
Join date : 2014-02-23
Location : Trying to figure out..

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by pathfinder on Thu Sep 10, 2015 9:22 pm

A good discussion after sometimes,Divergence is a useful pattern but should not use as a rule of thumb.It's a sign of possible trend reversal.But it may not happened.
As Small mentioned weekly charts are better than daily charts.Usually charts work best in trending markets.
Our CSE is relatively a small market.So the chances of charts to go wrong is higher as the liquidity is low.

Can't agree with NC on assistance matter.The boss can not work properly in the absence of non of his assistances.
avatar
pathfinder
Top contributor
Top contributor

Posts : 1334
Join date : 2014-02-23
Age : 37

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by slstock on Fri Sep 11, 2015 1:53 am

Hunter, thanks for the effort...

I see a divergence in 2014 and late 2010 at CSE.

But where is the one in 2008/2009? My eyes couldn't spot one ? Is it deceiving me?

_________________
Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
Please read : http://forum.lankaninvestor.com/t1548-important-warning-and-message
---------
avatar
slstock
Veteran
Veteran

Posts : 5390
Join date : 2014-06-12

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by HUNTER on Fri Sep 11, 2015 9:51 am

slstock wrote:Hunter, thanks for the effort...

I see a divergence in 2014 and  late 2010  at CSE.

But where is the one in 2008/2009?  My eyes couldn't spot one ? Is it deceiving me?

Zoomed in to 'Daily' for clarity.




Anyway, in my view, these patterns cannot be proven scientifically; there is some subjectivity associated.
avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by smallville on Fri Sep 11, 2015 8:15 pm

All indicators are laggin indicators.. even RSI, ADX, MACD.. However, they can give u a good indication what's gonna happen next.. But also they can give you wrong implications - and thats why they are called "laggin"..

See KZOO chart for a change.. It almost gave a buy before NP buyin in.. But the prices didnt match noh?
But for matters like indexes we can still have a good idea using indicators.. And u can always use price action to find support levels even without indicators Smile

So in modern days, our action before indicators "show" it make sense..

_________________
I take risks as a Trader and I select stocks based on Tech and daily Cash in/out. Therefore, my methods may not suit u.. so DYO analysis before making any decisions.
avatar
smallville
Top contributor
Top contributor

Posts : 1744
Join date : 2014-02-23
Location : Trying to figure out..

Back to top Go down

OSEA building positive divergence

Post by mymoney on Tue Sep 15, 2015 10:08 pm



OSEA is consolidating 23-25.50 range while we can see some slight positive divergence in both RSI and MACD. Is OSEA building some positive momentum silently ?

mymoney

Posts : 493
Join date : 2014-08-06

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by HUNTER on Tue Sep 15, 2015 11:20 pm

I mentioned my view on OSEA last week.

http://forum.lankaninvestor.com/t4908p285-this-weeks-most-discounted-101-shares-by-hunter#50140

We can expect few more counters making positive divergence within next few weeks (in my view).
avatar
HUNTER
Top contributor
Top contributor

Posts : 1655
Join date : 2014-07-14

Back to top Go down

Re: ‘Bearish divergence’ is warning investors not to buy the dip in the stock market

Post by Backstage on Thu Sep 17, 2015 2:41 pm

Now close to 7100.
Yellen, Geneva and Warrant 22. Basketball
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Page 1 of 2 1, 2  Next

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum