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Bearishdivergence

SPX - Bearish Divergence - Buy the Dip Opportunity?SPX is looking a little extended at these levels, with bearish divergence on the MACD signaling waning momentum, i would look to see a slight ease, from these levels Looking at potential targets, the major pivot around $4050 USD also falls on the 50% fib retracement of the most recent leg up. A less aggressive pullback could entail a retest of the 50 SMA. currently around $4120 USD In any case the market has been running hot and a pullback to some degree is inevitable, however given the macro background, unless the Fed signals they will begin tapering/ raise rates and/or the federal government pulls the stimulus and unemployment support out from under the population (highly unlikely) I see the market still pursuing a "risk on" trade at least for the time being. -TradingEdge
SP:SPX
by Profit_Link
How to analyse Divergences using RSI for BTCUSDThis tutorial on RSI Divergences is the second part of a RSI Masterclass series. We have already discussed how to make use of the basic RSI indicator in our previous masterclass tutorial. We will understand the use of Divergence oscillators in short timeframes for BTCUSD. A divergence happens when the price of an asset (BTC in this case) moves in the opposite direction to a momentum indicator or oscillator. It is the opposite of a confirmation signal, which is when the indicator and price are moving in the same direction. How to use Divergence in trading A divergence is often seen as a sign that the current market action is losing its momentum and weakening, meaning it could soon change direction. there is a significant chance of a price retracement Bullish Divergence A bullish divergence is the pattern that occurs when the price falls to lower lows, while the technical indicator reaches higher lows. After a bullish divergence pattern, it is common to see a rapid price increase. Bearish Divergence A bearish divergence is the pattern that occurs when the price reaches higher highs, while the technical indicator makes lower highs. There is a likelihood of a rapid decline in price following the divergence Please note: One of the most common problems with divergences is ‘false positives’, which is when the divergence occurs but there is no reversal. The technique does not give a set price point at which to open or close a trade, just an indication of the strength or weakness of the underlying market sentiment. ------------------------------------------------------------------------------------------------------------------------------------------------------------------- If you find the analysis useful, please like and share our ideas with the community as well as follow to stay updated with new ideas! - Mudrex
BITSTAMP:ETHUSDEducation
by Mudrex
1
Gold RSI Bearish Divergence And Bulls Are Over ExtendedGood day guys! I have noticed with the Euphoria and seeing how multiple indicators are revealing gold is in an over extended market. To me, it looks like the markets are in the process of forming the head of a potential head and shoulder pattern. However, just because the signs are there, does not mean the entry is perfect. I would love to see a sharp sell off to the downside. The dollar has fallen another 2% this past week and gold has had a rally. However, I still do not believe the big move in gold is in. With the sell off in most risky assets today, even in gold being a safe haven, that informs me that people are trying to take profit. Hypothetically, a lot of traders could be in margin trouble. I am not a predictor of the markets, but I do understand how the fundamentals and technicals work. I still see that the price of gold could go even lower, before we get our massive buying opportunity into the market. Usually, when interest rates rise, the price of gold fall and vice versa; when interest rates fall, the price of gold rise. However, I believe this time with the plethora money printing, this time we could see the price of gold going much higher. My sell entry is at 1887. Be sure to leave a comment below in regards to your thoughts in regards to gold. We appreciate you for checking out our post and remember, we will see you on the other side. Rodrick (CEO) Third Eye Traders
OANDA:XAUUSDShort
by ThirdEyeTraders
9
BTC Turns bearish on Daily - ShortBitcoin has dropped below the 20week and 200day moving averages for the first time since April 47th, 2020. With a triple bearish divergence, a break of the pitch fork trend and floating below the 20wk MA..I cannot help, but read this as bearish in the short term until we secure a weekly close back above the 20wk MA. Not sure how much lower we could go, there is no telling. How much longer until we reverse, unsure. Is this the end of the bull run? I don't want to believe so, but you cannot deny the chart. There is aways time to return when the whales give us a bullish sign that things are reversing, but I don't see on the chart right now. I remain bullish in the LONG. This is not financial advice, It is only my opinion.
COINBASE:BTCUSDShort
by MFGroon
NDX/SPY and NDX/DJI looks like the NASDAQ is popping a bubbleIntroduction For my adult life the advice has been to buy just by ETFs. And for the last decade or so the advise has also to been buy the NASDAQ ETF because it over-performs the other indices. It seems that advice is on the precipice of ending due to some long term indicators on the verge of flipping their switches. The MFV VSTOP is set to 3x and right now price action has gone below the stop. IF we confirm below the arrow stays in place and right next to it we get that black dot which means the move is confirmed. Not shown to keep the main chart clean is the VSTOP on the current time frame which has already flipped bearish. Price action is also leaning heavily on the 20 month SMA which, due to its use in a variety of other indicators is rather important. The Chart also declares that we have a lot of divergence on some popular indicators indicators I could almost exactly use the same write up for NDX/DJI but this chart has the RSI with a double top instead of clear bearish divergence. A look at NDX, SPY and DJI to try and guestimate what this dump could look like is very bearish indeed. The dotcom bubble burst was a historical economic event and it seems its ghost has come to haunt us. SPY and DJI will be less affected by this downtrend but will still take significant beatings over the next coupe of years. The fact that they don't go down as much means they are less likely to get a playable/dupe-able bull trap Here is a replay of the dotcom pop on NDX with my general thoughts. It is on the three day with the daily BB in orange and the weekly in blue. There will be a lot of technical bounces on the way down and a put/short strategy seems very advisable. My Conclusions I am not going to go on at length about the dollar or inflation in consumer staples or the wallstreetbets effect. It looks pretty bad out there when you compare the most bullish US index to its brothers and that is generally bearish for the broader market. I am not a financial advisor and I don't have a CMT... purely self taught. But I am going to look to short in one way or another these bearish continuation patterns and I might even take some opportunistic logs when the price action first hits the weekly bollinger band. There is going to be a lot of pain over the next couple of years but there is nothing moral about being bad with money, or losing money. Here is TSLA based off of my linked idea. Plenty of chances to swing trade in this dumpster fire of an equity if I can get some indicators to back up the TA. The main chart suggest we will get a multi-month bull trap. The chart where I replayed the NDX bubble burst also suggest a multi-month bull trap. Even though the macro situation is bearish you still have to be nibble enough to deal with the rallies however you decide. My other linked idea is how I potentially see BTC affected by the everything bubble
TVC:NDQShort
by This_Guhy
12
Is a large drop possible for Bitcoin? Hello Everyone, As alt coins are exploding, Bitcoin is starting to look not so great. There is a head and shoulders pattern forming on the daily chart which indicates a trend reversal in the short to mid term if confirmed. The neckline is around $52,500 and breaking it would confirm this pattern which would then lead to a movement to the downside. There are several factors giving validation to this pattern. Here are the technicals: 1. There is a Head and Shoulders forming on the Daily Chart with a neckline of $52,500 area. Breaking this would indicate a short to mid term trend reversal most likely the low 40k to high 30k area or to my "Buy Zone". 2. MACD showed weak buying momentum and is now showing waning buying momentum. A bearish cross is possible. There is also bearish divergence as price was making higher highs and MACD tops were showing lower highs. MACD also failed to stay above the intersection point between buying and selling momentum. This indicates weak buying and further validates the right shoulder of the Head and Shoulders pattern. 3. RSI is showing bearish divergence as RSI is making lower highs as price is making higher highs. This indicates market exhaustion or in need of a cool off period. 4. Price Action: Price action is showing us a few things. Since the drop in late February, as price was moving up, volume was very stagnant and showing weakness or going down. This is bearish price action. This indicates market exhaustion or weakening of uptrend. 5. Dead cat bounce to retest $60,000 which gives more validation to the right shoulder of the Head and Shoulders pattern. Notice the largest pool of volume in these last 1.5 weeks came from a movement towards the downside. With all of this said, Bitcoin still needs to break the $52,500 level to confirm the Head and Shoulders pattern. Bitcoin could easily bounce off $53,000 and continue upwards but the indications above are saying this is unlikely. I have thought bitcoin is overdue for a cool down period and a pullback to the low 40k to high 30k area would still keep Bitcoin very bullish. It has yet to test a 20 or 50 weekly moving average and it did so several times in 2017. I hope this helps some of you manage your risk or helps your decision making in your next trade. As always, manage your risk, be patient, and good luck trading!
BITSTAMP:BTCUSDShort
by RomanXIV
8
GBPNZD Bearish Divergence + DisequilibriumOn the hourly and half-an-hourly timeframe, GBPNZD is showing bearish divergence signalling a pullback/reversal from its highs. Furthermore, price action is making higher highs while the Relative Strength Index is forming lower highs . Additionally, there is disequilibrium between price and the conversion line (Fast Moving Average) on the hourly and 4-hourly timeframe. Price should retreat to meet the conversion line before potentially creating even more disequilibrium between the conversion line and base line which should also meet bringing price even lower towards it. Any tips/advice on how I could improve this analysis?
Short
by navshxrir9
BTC - H4 - DOUBLE TOP ? YES OR NO ?H4 : Potential double top formation in progress coupled with a potential RSI bearish divergence also in progress. Recent price is showing a sideways 56'500-58'550 trading range, holding on both Mid Bollinger Band and ongoing uptrend channel base support line. The former high @ 58'549, has, so far, not been retested yet, high being 58'315 (las long white bullish candle). Nevertheless, some tolerance could be accepted and early signals of a potential double top coupled with a RSI bearish divergence should not be underestimated ! On this H4 time frame, watch the following levels : UPSIDE : R1 : 58'549 R2 : 60'000 R3 : 61'075 R4 : 64'895 DOWNSIDE : S1 : 57'190 S2 : 56'900 S3 : 56'500 S4 : 55'465 Watch H1 for clues Ironman8848
BITSTAMP:BTCUSD
by Ironman8848
6
ETH Bearish AB=CD, divergence @ 3K!Ethereum has had an amazing run after Bitcoin's recent dips, increasing by nearly 50% of its total price after dips from only a few weeks ago! However, it looks like indicators are starting to show some weakness for ETH in the short term on the 4-hour chart. ETH now approaches its ascending channel's top (white line, note: linear is shown due to it being a short-term trend, but the trend looks similar on the longer-term logarithmic chart). As ETH approaches 3K, an almost perfect AB=CD pattern has formed indicating a potential bearish reversal for the short-term. This looks further confirmed by dwindling volume in addition to divergence forming against price on both MACD and OBV (red dashed lines). However, with 3K being such a huge target for many ETH followers, there is always the possibility that FOMO kicks in causing an unexpected catapult upward. But in my opinion, the trend if heading downward from what I can see. Hence, you should take the above solely as my opinion and not as financial advice. However, please also like or comment if you agree or see anything differently.
BITSTAMP:ETHUSDShort
by crypto_trends
5
Educational: AB=CD pattern w/ BTC exampleOne fairly easy and useful pattern for determining reversals is the AB=CD pattern. The pattern simply looks for two rising or falling legs up or down respectively. Then one simply measures the retracement level from point B followed by the projection from C (luckily tradingview has a tool to assist with this). If these values equal a 0.618 or 0.786 retracement followed by a 1.272 or 1.618 projection respectively, the pattern is likely to indicate a reversal of the current trend. For example, above we can clearly see the pattern almost perfectly matched the required levels of 0.618 and 1.272. However, no pattern is guaranteed, so it is always recommended to seek out confirmation. As we can see in the above example, there is bearish reversal divergence that can be seen on both RSI and MACD (dotted green lines), whereby price is rising while oscillators are falling, indicating an even greater likelihood for a reversal. Upon confirmation of a reversal, one can then target Fibonacci retracement levels as key points of interest as can be seen above. A nice part about this pattern is how simple it is to spot and draw out particularly with tools available on tradingview. Hopefully you are able to use this pattern as another useful tool in your arsenal!
BITSTAMP:BTCUSDEducation
by crypto_trends