Find bullish and bearish divergences at AMZN's key levels to time mean-reversion entries with defined risk.
Score a divergence setup based on type, timeframe, level quality, and volatility to size the trade.
AMZN frequently snaps back to VWAP/levels after stretched moves, making divergences actionable.
Divergences at HTF levels (daily/4H) carry higher follow-through than mid-range signals.
News spikes (AWS/retail) often fade; divergences help time the reversion.
Liquidity and tight spreads keep RSI signals cleaner than thin, gappy tickers.
Higher high / lower high (bear) or lower low / higher low (bull) against a marked level.
RSI divergence plus slowing tape/volume near the level improves odds.
Daily/4H levels, VWAP bands, and previous day high/low. More confluence = more size.
AWS/retail headlines can invalidate weak divergences. Size down when headlines hit.
Wait for wick reclaim (bull) or failure/reject (bear) instead of guessing the turn.
Best windows: first 90 minutes and power hour; midday signals are lower quality.
Mark HTF levels, note news risk, define stop/targets, confirm spread/liquidity.
Wait for wick reclaim/reject; confirm RSI divergence; watch tape speed and VWAP.
Scale out at 1R; move stop to break-even; avoid overholding if VWAP tags.