Good afternoon traders,
I've been waiting for all the euphoric traders to catch themselves slipping acting like "up only" and the bull market is back on and today we're currently down $2000 from the local top where we rejected the 200 day MA and also printed a bearish divergence (see momentum oscillator - stoch rsi for reference)
Bearish divergence:
1) Price action prints a higher high
2) Momentum oscillator prints a lower high
(Indicating weakness in the trend)
If this plays out we should retest $39,999 at least and if this holds it's possible we head higher in the short term but if that support fails this will be a confirmed fake out (liquidity grab) while institutions (whales) get out of their longs and then sell while retail fomo's into a long at the top and gets greedy/euphoric.
The markets are designed to play against human emotion and the masses (90%) while the 10% countertrades their every move and get hilariously rich over the long run if they stay consistent with this formula.
Pay attention to the market when most are fearful and note what happens next, same goes for when most are greedy.
They provide liquidity for whales to get out of their previous position while they are entering new ones.
I've been waiting for all the euphoric traders to catch themselves slipping acting like "up only" and the bull market is back on and today we're currently down $2000 from the local top where we rejected the 200 day MA and also printed a bearish divergence (see momentum oscillator - stoch rsi for reference)
Bearish divergence:
1) Price action prints a higher high
2) Momentum oscillator prints a lower high
(Indicating weakness in the trend)
If this plays out we should retest $39,999 at least and if this holds it's possible we head higher in the short term but if that support fails this will be a confirmed fake out (liquidity grab) while institutions (whales) get out of their longs and then sell while retail fomo's into a long at the top and gets greedy/euphoric.
The markets are designed to play against human emotion and the masses (90%) while the 10% countertrades their every move and get hilariously rich over the long run if they stay consistent with this formula.
Pay attention to the market when most are fearful and note what happens next, same goes for when most are greedy.
They provide liquidity for whales to get out of their previous position while they are entering new ones.
Trade active
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.