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Bearishdivergence

S&P 500 Bearish DivergencesThe daily chart of the S&P500 shows price in an uptrend channel while currently trending in the lower half of the channel which is the weaker half of the channel where price is most susceptible to declines. For now the price candles remain green on the daily chart which indicate bullish momentum behind price. Most obvious on the chart right now is a bearish divergence between price and the lower indicators. A bearish divergence occurs when price makes a series of higher highs, while the indicators below make a series of lower high, thus creating a divergence in the trendline drawn across their respective peaks. The Price Percent Oscillator(PPO) shows a steady decline in price momentum with the green line PPO line beginning to cross below the purple signal line. This indicates bearish momentum in the short-term, but since both lines are still trending above the 0 level the intermediate-term momentum is considered to be bullish. The current reading could be interpreted as a bullish momentum pullback. The Average Directional Index(ADX) shows the green directional line above the purple directional line which indicates a bullish trend in price, but the purple line is close to crossing back above the green line which would indicate a shift to a bearish trend in price. The green directional line is in a slow decline as price has moved higher indicating weakness in the uptrend for price. The histogram in the background is dark green and trending flat meaning that there is no force or strength behind the dominant trend. The Traders Dynamic Index(TDI) shows the multi-color RSI line declining, but still above the 50 level which is the midpoint of the total RSI range. Since most of the RSI trading range has been between the 40-80 levels the background is colored green to indicate bullish momentum in the intermediate-term. We still want to watch that 50 level though as a breach below it could mark the beginning of a strong momentum pullback in price. The Bollinger Bands of the RSI are narrow and trending sideways indicating that volatility has leveled out and that a large move in either direction is likely. The TDI is also showing a bearish divergence from price above just as the other indicators are. Overall, the S&P500 remains bullish on the daily chart with caution warranted due to the bearish divergences between price and the lower indicators. Current stop-loss orders for trend traders should be placed just below local lows made in September and October of 2020 near the $3230 level.
SP:SPXLong
by PrepForProfit
APT - Getting Very RiskyAPT has been forming Higher Highs and has been in a superb uptrend but now it looks very risky at such elevated levels. As we can see that it has been supported by the upward trendline, we should also notice a Bearish Divergent MACD Cross which indicates that the Bullish Momentum may be running out of steam for now. I believe that if we see the trendline break, we might see a follow through and price to plummet all the way down to Support at the $70.00 - $72.00 range. This could be a 35% move from current price level of $110.00. APT has been in a Long Term Uptrend and I think we might see a shift in the Medium Term Trend soon, which is fine and healthy for the Long Term Uptrend to continue. Please note these are my own notes, by no means trading advise. Please do your own research before entering into any trade.
AShort
by AsimMirzaTrader
2
Bullish Pennant for Bitcoin?Bitcoin has been creating so many moderately predicable bullish patterns, however, it's tricky swing trading due to fake-outs occurring regularly. Clearly, BTC is trading in a Bullish Pennant, however, that's always subject to change if the green upward sloping support of the pattern doesn't hold. I have colored the bullish pennant green for ease of visualization because I like leaving previous patterns on my chart to get a sense of the Macro trading environment and areas of confluence, looking back at patterns in hindsight can be a learning experience, no matter how good you are at trading there's always more to learn, especially trading crypto. RSI is showing a descending triangle with a noticeable bearish divergence. since Jan 5th we've seen the price rise but the RSI traded sideways and downward creating lower high after lower high... It's very likely the bulls defend the bottom area of the descending triangle, expect a bounce near term. The KST's seen a bearish cross & is trading in a not so perfect descending channel, I am expecting a bullish cross near term because we're oversold and it would characteristic given the trend thus far.
COINBASE:BTCUSDLong
by ScotianBot
📖 A Guide to RSI Divergences - By Trading-GuruIn this guide I will walk you through the three main different kind of divergences and explain to you how you can spot them. I also show you the extreme power RSI divergences have by looking at BTC/USD and mark them on the chart. It's quite special to see all these three kinds immediately after another, and it's really nice to see them all working out here as well. Obviously, no signal will not provide a 100% success guarantee. But this text-book example on the BTC price showing how they work out every time is great for both learning and profit taking. It can be very hard to trade an asset that has seen such immense growth and nearly vertical upwards momentum. Using RSI divergences you will still be able to predict price reversals and trade successfully. So let's take a closer look at the three different forms of RSI divergences that I cover here on the chart. Exaggerated Divergences Exaggerated divergences are similar to regular divergences, but are considered weaker and less predictive variations. The term exaggerated refers to a circumstance where either the oscillator or price makes an equal high or low. Regular bullish divergences and regular bearish divergences both have two exaggerated variations, so there are four exaggerated variations in total. In this case we look at a bullish version where the price is consolidating the but the RSI shows an increase in momentum. Hidden Bullish Divergences A Hidden Bullish Divergence is considered a continuation signal in an uptrend. It refers to a circumstance where an oscillator reading falls down below its previous low, while price is still higher than its previous low. Hidden bullish divergences are most likely to occur in the middle of an uptrend – often after a healthy pull back – and indicate that the uptrend will most likely continue. The starting point of a hidden bullish divergence should be a clear swing, not just a red candlestick. Regular Bearish Divergence A Regular Bearish Divergence is considered a strong reversal signal in an uptrend. It refers to a circumstance where price rises and makes a higher high, while the corresponding oscillator reading is still lower than its previous high. Bearish divergences are most likely to occur in strong uptrends and signify that upward momentum is weakening. A reversal – or at least a pull back – is then expected to follow. Regular bearish divergences also appear in exaggerated form. Follow me for consistent high quality updates, with clear explanations and charts. Please like this post to support me. - Trading Guru -------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
BITFINEX:BTCUSDEducation
by Trading-Guru
25