Transcription
What's up guys? What is up, man? You guys have been like, I swear, every 30 minutes in the Market Cipher chat, I see someone talking about, "Oh, here's this divergence." And then I look at it, it's not even a divergence. You guys are killing me. I'm just like looking for a few right now that way I can just kind of have them locked and loaded, you know?
Yeah, these ones from back in 2017 were fire. It was just like divergence and then green dot, divergence, green dot. So good. These green dots were like getting you back in on the dips too. Let's see here. I remember this one too. This one, like, so the price comes lower and then the momentum goes up. That was a good one. That was like in a downtrend too. If it's not a divergence, it's convergence, which means like price is going up and then momentum is going up, price is going down and momentum is going down. So, um, yeah, I mean, like at these low points, a long would be nice. It's just not a divergence. It's not like a bullish divergence in a downtrend like this was. So this right here is a much stronger signal, like this blue blob right here is a much stronger signal to long than this one, even though they both worked out. Just you just have to know the difference between convergence and divergence. Divergence means it's two things going in two different directions. One's going one way, one's going the other. You ever see someone where they got two eyes and both eyes are looking in different directions? I know a few people like that. Some of you flop and gropers are looking at me like that.
But yeah, there's actually like a massive divergence here. Like out of these three blobs, there's like that bigger divergence, which is like, it's just been diverging this whole time. But, um, you know, you actually had a, I actually see a divergence right here. So it came up, momentum created a higher low, and then you actually had a lower, a lower low there. So that was your key that that was the bottom. And then here again, you have a higher low with the momentum and you have a lower low with the price. I'm sorry, it's actually, uh, this right here. It has to be the same length. You can't have like this little thing and then that's the price. It's like this little bit and then there actually is a bigger one of these two. So you had like a mini one and then you had like a bigger one right there. Oh, right here was one too. So you have two humps that are lower. It doesn't have to be part of the same blob, it just has to be like the same distance. So you're gonna follow the start point here, come up, draw it, and then you're gonna match that dotted line up to the up, up to over here. So you can see the price went up, momentum went down, dumped. Right here you can see the price got lower, momentum went up, BAM, went up.
I've gotten really good at spotting these. So there are like imperfect divergences where the price stays the same but the momentum goes lower. That's a weaker divergence than most, but you can actually still trade off it. So like if the price is going up and your momentum is flatlined, that is that is a bad sign. That means, uh, it might correct a little bit. But you can see that this wasn't a big correction because we didn't get lower momentum. So it wasn't as strong of an indication. But that is there. It's good to know that that can happen. You have this one right here. As you can see, a divergence has to be like, it has to be like a less-than or greater-than sign. Like the lines have to be going different directions. The momentum has to be going down, the price has to be going up, or vice versa.
What's the longest stretch you can do divergences? I think what really matters the most is as long as your line, like this line is the same length as this line down here, it's like the same exact area that you're covering. Like a divergence can cover over multiple blobs for sure. But, um, some of those, some of the best indications are like when it's one blob and then it creates that smaller hump. And you see that, you see the price overextending. That means that like a bunch of flopping gropers kept shorting even though the momentum was less. So and then the bots eat that up quick. So if you're quick enough to just buy up that fear and buy like right as the green dot appears, like just buy other people's fear basically, then you can see it. You can make serious scalps, like long scalp plays. I mean, or even swings. Cuz I mean, like you get this divergence down here and that came up. These, these swings have been crazy. Eleven thousand three to twelve thousand one. Like anyone with 5x leverage even is like getting erect right now. You have to be like two or three. It's like ridiculous how big these swings are.
But, um, alright, let's see here. We got, okay, so we got raising momentum there. We got declining momentum. That was a really nice divergence. And look at that huge dump. That was a big dump because he had this big huge decline in momentum with the price going up. That was a good sign there. This one right here, price creates a lower low, momentum creates a higher low with the same blob too. That was really nice. I was kind of thinking there might, but there might have been one in here, but, um, oh, here we go. Yep. Yes, you'd long here and then you'd, uh, you know, wait it out because you got strong hands, cuz you got Market Cipher, you know what I'm saying? And you come up here and Market Cipher is telling you that there is a bearish divergence. So that was actually your cue. Even though you had a really nice long entry down here, and it is, we do say to like hold on to your nice if you have a good entry, kind of hold on to it. But, um, this was your signal to sell your long and wait for a better entry. So we dumped down.
I don't see if I, if I'm correct, all yesterday I didn't see like a single divergence all day until like late at night. Like see how it comes down, negative, down, down, up, up, down, down, up, up. Does the same thing over and over. It's just pure convergence in sideways boring action. There was this nice one here last night. BAM. Okay, so here I actually do see. I mean, this hasn't fully manifested yet. We might get another hump here. But, um, I do see the starting signs of. I see a little bit of decline in momentum. I see higher wicks or at least wicks at the same size, you know, you can, it's kind of flexible. But, um, that this already isn't looking good to me. I'm seeing momentum going down and we're seeing red already. So I don't know at this point, five. This purple line might be resistance now. We might have to come back down to our curve or bullish parabola and explode from there. That's like the primo scenario when I look at this because we were flat for so long. The snake eyes here was, uh, I don't know, it was kind of like you would have had to hold that for a long time and you would have been your pants the whole time. But the reason why we got snake eyes there was because of the massive mass, how just how incredibly oversold this was. This was like forced down. I mean, that's what capitulation looks like. You're gonna have these huge oversold readings and our green dots are gonna be abused because what the green dots are on Cipher B is just massive sell momentum. It basically tells you to long when the night is darkest. And so the night was darkest and then it retrace a bit. And then I feel like this leg, looking at this psychology behind this, is like we printed a higher low on this momentum even though price came down. So what that tells me is like this was like the institutional dump. They retrace and then the foot, and then the FOMO shorters came in, but they were too late. You know, the dump already happened. So it corrected on them. The shorters lost all their money and then we basically just went sideways and up after that.
The way I like to think of divergences is like the bots and the whales make their move, and then it comes up a little bit, and then the regular person comes and makes the move. But the market's already lost momentum at that point. So that's usually when it starts pumping is when you see that we can momentum with lower low. That means the market basically overextended, has to snap back to the mean. Yeah, we got Crypto Face in the house. We got my brother in the house. What's up, bro? Oh, we got Jason out. What's up, bro? I figured out how to stream. It took me like four hours. Can we alternate it with indicator A to see a better pick? Okay, you want me to do Cipher A? Cipher A is cool because, um, it really works in tandem with B because B tells you to long when like the night is at its darkest, you know, like down here, whereas A, A is interpreting these EMA ribbons. A is basically like a shit-ton of EMA ribbons that are color-coded. And whenever there's a cross in these EMAs, it's programmed to spit out like a certain symbol. So it's not like Jesus Christ himself coming and saying, Green Dot, bet the farm, it's going up. Hunt the enemy. What it really means is it's just interpreting the EMAs for you so you don't have to do it. And what the green dot means is, uh, the EMA ribbons are blooming up. It's like a, it's a new, you know, like they're, they're folding over into blue when they were gray. So when you first get these pinches, when you first get the first sign of a blue EMA, like right here, you can kind of see that little blue in there, that's when you'll get that reversal triangle. And then if it can pump up a little more and all the EMAs finally turn blue, that's when you'll get the green dot. So that is why on the shorter timeframes, if we're in a dump, you'll actually see it dump from the Cipher A green dot. That's because right as the bulls are trying to lift off, like right as the plane is trying to lift off the ground, the bears come in and snatch it from the bulls right away. And that's that's like the psychology behind that's the explanation of why like a five-minute Cipher A green dot would actually lead to a dump because it's like it's basically the the bulls pumping it up, they get a breath of air, and then the bears push them down under again.
So in a downtrend, your green dots are, uh, I'd say Cipher A, they're good for riding trends. I wouldn't really use Cipher A as like a consistent reversal indication like Cipher B is. Cipher B tells you to long when the night is at its darkest, when when market fear and uncertainty are at their highest. And that's when your biggest gains are bred. Cipher A is like that second confirmation. It's like BAM, you got that, you got that daily green dot down here and then it folds over, you get a triangle, okay, good sign, pumps up, green dot, BAM, that's like your double indication. So you got a leading indication followed by lagging. And then look at that, it's just higher, higher lows. Hidden divergences, man. Hidden divergences are like tough to explain to people who don't even know what a regular divergence is. But I mean, basically, like when you're in an uptrend, you're gonna be mainly looking for bearish divergences. So even though the price action is bullish, you're in an uptrend, the price is going to diverge from that uptrend to the bear side for a short while before it eventually, eventually you'll get like a green dot or something and then the uptrend will continue. But you're gonna have bearish divergences in uptrends and bullish divergences in downtrends. That's a typical divergence. A hidden divergence is actually a, it's a divergence that's in favor of the trend. So if you're in an uptrend and you had like a bearish divergence, it'll be like, it'll basically be like increased buy momentum in an uptrend. That's like the way to describe it, I guess. But like a hidden divergence, which is basically like in favor of the bigger trend as opposed to like countering it. Yeah, you know, you really don't have to. I mean, if you guys want to look into hidden divergences, you can. I mean, there's, they're definitely good trades. Knowing those, but you can bounce back and forth between like regular ones that usually, I mean, you'll see them pretty quickly, pretty frequently, you know, like this are just in this most recent, you know, you have AG lower low and higher at BAM, long. And then let's see here. Yeah, holy. So this one we saw earlier where the price stayed the same but momentum went down. Remember I said that was a? But yeah, I liked when I, so when this stream started, I had told you guys that this looked like a divergence. We had decline in momentum and an even price. And look at this, it's dumping. So you like, you just saw it in real time.