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Bearishdivergence

Bearish Divergence on the CADCHF 4h ChartBearish Divergence with CCI (Commodity Channel Index) A bearish divergence occurs when the price is making higher highs (indicating bullish sentiment), but the CCI, which measures the variation of a security's price from its statistical mean, is making lower highs. This discrepancy can signal weakening momentum in the upward price movement, suggesting a potential reversal or pullback. In this case, this divergence on the 4h chart indicates that despite the price climbing, the momentum behind this rise is fading, hinting at a possible downturn. MACD (Moving Average Convergence Divergence) Crossing Down The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. A downward cross, where the MACD line crosses below the signal line, is a bearish signal. It suggests that the short-term momentum is slowing down compared to the long-term momentum, reinforcing the bearish sentiment indicated by the bearish divergence in the CCI. Price Touching the Upper Bollinger Band This suggests the market might be in an overbought condition, especially in the context of the bearish divergence with the CCI and the MACD crossing down. When the price hits the upper band, it's common for traders to expect a retracement or reversal, as the market could be seen as stretched too far to the upside. Price Ranging Above an Untouched Weekly Pivot Point Pivot points are used to identify potential support and resistance levels. The fact that the price is ranging above the weekly pivot point and hasn't touched it yet indicates that this level could act as a target for the downward movement. Pivot points are often considered floors or ceilings in market price movements, with the price making significant moves upon reaching these points. Potential Drop to the Weekly Pivot Point at 0.66417 Considering the bearish signals from both the CCI divergence and the MACD crossover, along with the price's current position above an untouched pivot point, the analysis suggests that there's potential for a downward move towards the weekly pivot point at 0.66417. This level could serve as a short-term objective for bears in the market or a reversal point for traders to watch closely. Summary This analysis points to a cautious stance for traders, with a bearish outlook in the short term based on the technical indicators that were highlighted. It would be wise to monitor these indicators closely, along with other market factors, to confirm any potential moves before making trading decisions. Always remember, while technical analysis can provide insights into market movements, it's crucial to consider a wide range of factors, including market news and economic indicators, before trading.
Short
by TradingClue
AUDNZD | Hidden Bearish Divergence | Harmonic Bearish Shark The AUDNZD chart currently shows the formation of a XABCD Harmonic Shark Bearish Pattern, indicating a Potential Reversal Zone (PRZ). Additionally, there is a hidden bearish divergence, suggesting that the current uptrend is likely to reverse into a downtrend. Furthermore, on the daily chart, the price has just touched a strong daily resistance zone, which also serves as an Order Block (OB). This action confirms the bearish OB and all these indicators collectively suggest a shift in the trend to a downtrend. In technical analysis, a Harmonic Shark pattern is a specific type of harmonic pattern that signals potential trend reversals. The completion of this pattern at the PRZ indicates an area where traders might anticipate a change in the current price direction. A hidden bearish divergence occurs when the price forms higher highs, but the corresponding indicator (such as the Relative Strength Index or RSI) shows lower highs. This suggests underlying weakness in the upward momentum, potentially leading to a reversal. The concept of an Order Block (OB) refers to a significant level of support or resistance where institutional traders have previously entered the market. When the price approaches and reacts to this level, it can confirm the strength of the OB. On the 1-hour time frame, also there is a hidden bearish divergence, and the Previous Day High (PDH) liquidity has been taken. Whenever the PDH is breached, a pullback to the downtrend is often observed. Additionally, the trend line on the 1-hour time frame has been broken, and the price has retested this trend line. According to Dow Theory, these indications suggest a shift in price behavior from forming higher highs (HH) and higher lows (HL) to forming lower highs (LH) and lower lows (LL). On the daily time frame, the price has tested a strong resistance zone and is rejecting from its peak resistance level bearish OB. Overall, the daily chart appears bearish, indicating a potential trend change. Additionally, there is a trend line liquidity that needs to be breached for the price to move in either direction. In summary, the combination of the Harmonic Shark Bearish Pattern, hidden bearish divergence, and interaction with a higher time frame to lower time frame strong daily resistance zone (Order Block) suggests a strong indication of a potential shift from an uptrend to a downtrend in the AUDNZD pair. However, it's essential to conduct comprehensive analysis and consider other factors before making trading decisions.
Short
by awaisulabdeen
14
META could fall from ATH SHORTMETA on the weekly chart is at the ATH which is as a consequence at the third upper VWAP line. The RSI indicator shows the faster line crossing under the slower line. The relative trend index has topped out. Both represent bearish divergence. META makes its money with advertising dollars for revenue. There are increasing challengers to split revenues that could go down if a recession happens. Other headwinds are the federal regulatory blaming META for issues such as foreign interference in our elections, or child molestors floating on the platform without adequate protections for minor or collusion in a monopoly with other high flying targets. I find this to be a good juncture to take a short trade in META on a swing looking for it to last until the next earnings period.
NASDAQ:METAShort
by AwesomeAvani
MINAUSDT Faces Resistance Hurdle: Breakout or Bearish DivergenceMINAUSDT is encountering a critical resistance level of $1.5484 on the weekly chart. This is the third attempt to break through this level in the daily timeframe. Technical Analysis: Resistance: $1.5484 (Weekly) Support: $1.0113 (Weekly) Relative Strength Index (RSI): Supported at 50, Bearish Divergence Key Observations: MINAUSDT is facing a significant hurdle at a key weekly resistance level. A breakout above this level could signal further upward momentum. The repeated attempts to break resistance on the daily chart suggest persistent buying pressure. The RSI is currently at a neutral level (around 50), but there is a potential bearish divergence. This means that the price is making higher highs, but the RSI is not confirming this move by making higher highs itself. This could indicate weakening momentum despite the buying pressure. If the price cannot overcome resistance, it could find support at $1.0113 on the weekly chart, potentially establishing a trading range between these two levels. A successful breakout above resistance could lead to further gains towards the next daily resistance level at $2.0344. Conclusion: The upcoming price action for MINAUSDT will be crucial. Overcoming the weekly resistance with strong confirmation from the RSI is key for a sustained uptrend. However, the bearish divergence on the RSI suggests a potential for a pullback if the price fails to break through. This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Short
by behnoudt
Is MRVL overextended ? SHORTMRVL on the 60 minute chart certainly had an impressive run for two days gaining 16%. The chart however shows the bullish candles are decreasing in range and price is more than two standard deviations above the mean VWAP and far outside the high volume area of the volume profile. Bullish volatility fell to close the trading week on Friday afternoon. My trade plan is to watch MRVL for consolidation and then a retracement of its bullish move. A cross of the faster green RSI down under the slower red RSI will be the bearish divergence to be seen to consider MRVL for a short trade.
NASDAQ:MRVLShort
by AwesomeAvani
1
Magic Stalls at Resistance: Bearish RSI, Potential Retest LoMagic is on the cusp of a critical resistance level at $1.4973. While the price recently established a new high, a potential bearish signal is emerging from the Relative Strength Index (RSI). Technical Analysis: Resistance: $1.4973 Support: $1.2646 (Daily: $1.2613, Monthly: $1.0208) Relative Strength Index (RSI): Bearish Divergence (New price high, lower/same RSI level) Volume: Recent price test at $1.4973 coincided with decent buying pressure Key Observations: The RSI is indicating a bearish divergence. This suggests that the uptrend momentum might be weakening despite the recent price increase. A significant support level exists at $1.2646 if the price breaks below $1.4973. Additional support levels lie at $1.2613 (daily chart) and $1.0208 (monthly chart). If the price manages to overcome $1.4973, the next key resistance level on the monthly chart is $1.8231. Volume Analysis: The recent price test at $1.4973 was accompanied by decent buying pressure, but the price ultimately faced rejection. This suggests a potential struggle for the bulls to break through this resistance zone. Conclusion: The bearish divergence on the RSI, coupled with the price rejection at $1.4973 despite buying pressure, increases the chances of a pullback. Traders should closely monitor the price action around this resistance level. A break above could signal further gains towards $1.8231, while a break below could lead to a decline towards $1.2646 support, with additional support at $1.2613 (daily) and $1.0208 (monthly). This information is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions.
Long
by behnoudt
SOUN might be overbought and overvalued for a reversalSOUNDHound AI on the 15 minute on Wednesday 60 hours ago, broke out after a trend down to begin the year. The tailwinds of the technology stock earnings and their tailwinds pushed hard. SOUN broke out through the entire high volume area and then rose above it. Pretty much the same from the lower aVWAP bands into the uppers after crossing over the mean line. On the three indicators, RSI , MACD and the Chop index bearish diveragence is seen. This may be an early reversal in progress but then again it might just be prudent traders liquidating to take full or partial profits to close out the week. I am running full on this, I will watch the price action early next week to determine a continuation vs a reversal. Relative volume and relative volatility may show long traders closing with targets reached and shorts taking their positions causing a pivot high of even a " long squeeze". Alerts and their notifications are set on a 5-minute time frame to allow for some early warning. On the other hand it SOUN can put out some higher decibels I may decide to look at the 2/16 options chain and chart for an OTM call in the $2.5 or $3 range.
NASDAQ:SOUNLong
by AwesomeAvani
4
CADJPY: Bearish Divergence Warns of Trend Reversal📉 Overview: CADJPY, previously bullish, now shows bearish divergence on the 1-hour timeframe, forming its first lower high. With a strong 90% short market sentiment, there is significant support for an anticipated bearish reversal. 📊 Technical Analysis: Bearish divergence and the formation of a lower high suggest a potential shift from bullish to bearish. 📈 Market Sentiment: At 90% short sentiment, substantial support for the expected bearish reversal is evident. 📉 Trade Strategy: Consider short positions, aligning with the bearish signals, and anticipate further downward movement. 🛑 Risk Management: Mitigate risks with effective stop-loss orders to safeguard capital. 📈 Conclusion: CADJPY offers a concise opportunity for a bearish trend reversal, supported by bearish divergence and strong market sentiment. Monitor for confirmation and adjust positions accordingly.
Short
by miansarimhameed
RIVN a short entry on the rejection by VWAP SHORTPIVN on the 15-minute chart was trading up against the dominant supertrend from last Thursday. Mid-morning price hit the resistance of the intermediate term mean anchored VWAP and reversed as suggested yesterday by the bearish divergence on the zero-lag MACD. Tomorrow is federal news which could increase general market volatility. I see a short trade targeting 15.25 in the area of the bottom of two-volume profiles anchored back 2 weeks. The stop loss is 15.9 at the highs of nearby candle wicks. Once the the move gets underway, those already in long positions may close to take profit and add into any short selling underway.
NASDAQ:RIVNShort
by AwesomeAvani
What is Volume Divergence? - Divergence in the US Markets?Whenever we see a divergence, this means they are going through a process of moving apart or deviating from what we are seeing. In this case the US markets, even though it appears to be trending higher, but its activities and especially its transacted volume are telling us otherwise. And what are their implications? My name is Kon How, my work in this channel, as always, is to study behavioral science in finance, discover correlations between different markets, and uncover potential opportunities. In conclusion: Please note the divergence we are observing here; it does not indicate that the market is going to decline anytime soon. What this means is that the bullish trend we are currently witnessing may be losing some momentum. Therefore, it's important not to become too complacent and assume that the bull market will continue charging indefinitely. During times like these, it's always good to take calculated risks with our investments. Continue to buy on dips with cautiousness. Micro E-mini S&P Futures and Options: Minimum fluctuation: 0.25 index points = $1.25 Code: MES Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME_MINI:MES1!
by konhow
It seems to be time for the Digital Gold to take Breath.After having a decent run for the past 12 months Bitcoin seems to get some relief for the sake of its healthy and strong uptrend movement. So What do we have in the market right now? In this post I will cover the scenarios related to the 1D time frame. As we all know the space we found in crypto is so much dependent on fundamentals the ETF was one big thing which runs the market for the past 6 months. And as we all know the game is played holding the motto "Buy the Rumor, Sell the News" most of the long position holders are going short and might as well be moving to CRYPTOCAP:ETH - the next contestant to get an ETF approval. For now Bitcoin just showed a bearish sign forming a rising wedge break out and MACD turning bearish for the short term. Besides a bearish divergence is already formed if you can see on the chart depicted by the yellow broken line. A retest of the rising wedge support line is possible while bulls try to get the throne back again. In addition candle stick behavior is also showing bearish sentiment if we consider the recent moves CRYPTOCAP:BTC made forming an inverted hammer like with a strong bearish candle formation. For now I am seeing CRYPTOCAP:BTC correcting in the short term. I will be updating which prices to watch closely. If things go as expected in the same manner as it is the breakout confirmation will most probably take Bitcoin to the recent 50% fib level at around $37K area. After watching out for the retest move and considering the ichimoku cloud on the lower time frame will be our confirmation.
Short
by cryptotalk_et