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Bearishdivergence

Class A Triple Bearish Divergence on BTC DailyWe see clear class A triple bearish divergence has formed on the BTC daily chart. This is an indication of a likely bearish reversal of the short term uptrend BTC has been experiencing. Recently, BTC has been holding the heartland of the bear flag channel that it has been in since June 16th. The recent upward price movement did not reach the top of the channel and now is heading down. The price action has been tightening for BTC, lately, so a full test to the bottom of the channel might be unlikely. It is difficult to predict where this move could wind up, the most bullish case would be dipping below the hear line, not reaching the bottom of the channel and moving back up. In that scenario the oscillators could get reset and this divergence was invalidated. The most bearish scenario would be to test the bottom of the channel and then break down, returning back to the long term downtrend BTC has been in for November 2021. Also, the long term bullish shark pattern which has around $10k as the shallowest PCZ is still in play. For me personally, I am not taking longs on BTC right now.
BITSTAMP:BTCUSD
by wuliwong
DXY to fall bullishly (W bottom Dollar Milk Shake scenario)Falling wedges are generally very bullish structures that have targets at the hight of the wedge. If a falling wedge is on a flagpole then the target of the wedge is going to be a flagpole extension. But price often don't go straight up. Having price action retest lows is very normal. Having price action retest a trendline that was resistance and turn it into support is very normal as well. If DXY does either one of those it can form the the W pattern I think can form from this set up. This chart is rather zoomed out to show 40 years of data. The RSI is clearly got some bearish divergence and has come ouf of the orange macro wedge into a micro black rising wedge. If price came out in a channel rather than a wedge, I would be a bit less bearish on DXY. I don't want to get too far ahead of myself when it comes to forecasting too far out but calling for a retrace seems to be a very safe call. That retrace falling to the gray box or the wedge resistance is also very safe. Calling for the RSI to chop its way downward to below 30 also seems a very safe call. My linked ideas show some very bold calls on DXY that were contrary to the broader market. I was one of the first people to publicly draw dxy in a falling wedge on the log chart. Please see the linked ideas for several of those ideas. I was also one of the first to publicly chart the falling wedge on bitcoin on the standard scale I was one of the first to publicly call for a inverted head and shoulders on ETHBTC The point off all that? I have a pretty good eye for seeing how different scenarios can play themselves out. When I started with Tradingview I didn't have the emotional discipline to trade properly them and that is still coming along. The DXY Dollar milkshake W scenario would cause the most pain to the most people who are not zoomed out and able to catch this transformation. I can't get caught out like that. And of course, I have been disastrously wrong before. Especially in cryto. But DXY moves much slower than crypto so there is more time to plan, zoom in and zoom out. I have tagged this neutral because I don't see a direct dxy trade I would want to do now. Indirectly I think the equities and crypto will go crazy for a couple of years and I want to benefit from a dxy reversal
TVC:DXY
by This_Guhy
7
The Big Short Incoming ? Simpler is always betterI opted to keeping it simple here, using just 1. FIBO RETRACEMENT to determine main support areas, which are likely to be broken but won’t give the price an easy pass through them, Support Area 3 (as mentioned on the chart) represents key area imo, and with a clear 2. BEARISH DIVERGENCE on the 4 hour time frame, I think breaking of all above mentioned support areas is the closest scenario to happen so be ready for a massive incoming drop. The mentioned support areas above are great take profit points if you opened a short position. This massive drop should only stop with a Huge Volume Spike , which if doesn’t appear before the 17K area, we can kiss it goodbye for now. PS: This is not a financial advice, DYOR and trade accordingly. Best of luck.
Short
by Mohanad_ElMeligy25
Lets Talks Divergence! Short BTC/USD !!Lets Talks Divergence! Short BTC/USD !! Note: This Post is for Educational Purpose only. Trade after doing your own analysis. Oscillators are the great tools to look for divergence. Divergence shows the Fall or Rise in Momentum of The Strength. In other words, the Divergence occurs when Oscillators show the opposite picture than the Price Action. Divergence can indicate the change in Trend Before it Happens therefore it is an essential part of my Trading. In the case of Bitcoin, the trend is Bullish and the Price Action shows Rising Trend but the Oscillators below (RSI and Chaikin) seems to be Falling. Trade Plan: Indicators are highlighting Bearish Divergence but the Divergence alone is not enough to take the Short Call. Adding another Strong Confluence I can find is the Resistance, Bitcoin is not able to Break the 24,000 - 24,500 Zone (Highlighted in Red), which shows that the Bears take over at this zone. Strong Resistance with Bearish Divergence on Daily Time-frame are the Strong Confluences which can result in Good Profitable Trade of 1:5 Risk to Reward. Stop loss: It is placed where the Price is Least Likely to go. Target: It is set in accordance with Fib Retracement and the last point where BTCUSD started Bullish Trend. Time Frame: Daily Indicators used: RSI & Chaikin Analysis based on: - Market Structure - Price Action - Divergences - Support & Resistance Disclaimer; Trading is never 100%. This post is for education only. DO NOT Trade without doing your Own Analysis.
COINBASE:BTCUSDShort
by M_Shariq
2
HSY Facing Technical HeadwindsNoticing some bearish divergence on the RSI. HSY of late seems to be trading in a shape that resembles both an ascending triangle and/or a rising wedge. Due to my inability to tell which pattern it is trading in, I will remain neutral on Hershey at the moment. However, the stock has seen quite a run-up in price (since Covid), so HSY holders now may be an optimal time to trim some of this position as market fundamentals and macro risks are looking increasingly problematic.
NYSE:HSY
by Gooby_Trades
1
USOIL - Bearish analysis & lessonG'day all, hope you're well! I don't usually publish my ideas, but I thought this might be worth a look since I've been experimenting with the effects of EMAs and Fibs on charts in what I like to call "Order of Priority". So, let's dig in. Before you read on, you hereby acknowledge that you will possibly be exposed to crappy chart jokes that may or may not include some form of innuendo and will likely be dad level, as well as a long-winded explanation. There are a few things happening in this chart that point to a short term downside target or at least $80/barrel - possibly lower. The first is the obvious giant 'W' pattern whose target was suspiciously met to within a buck or 2. The way I measured it is by running a Fib retracement from the last high prior to the W to the first wick after the lowest wick - I did this to find the .618 (dotted line Fib retracement on the left). I ignored the major drop as it was an anomaly. The wick after it lined up with the previous market bottom which made more technical sense. The .618 lines up perfectly with the 'W' neckline, so now we have a beginning and end point for a measured move - from the .618 down to the legitimate wick. Move that line upward and you have your target that met with scary precision. W patterns usually retrace to the neckline which is usually a .5 Fib after the move plays out, which lines up with the .618 Fib that we used to find the neckline. If it retraces lower, it's usually a speedy move to the .618 before becoming range-bound at around the .5. I've found this to be pretty typical of 'W' patterns in general. Secondly, we have the RSI and MACD indicators looking all depressed. A solid bearish divergence on the RSI and a downticking MACD, like 2 emo teenagers fighting over a black tshirt. In my experience, bearish divergences don't tend to reset until they first hit oversold territory, and there's a bit of a way to go before that happens. That distance in the RSI from the current position to oversold lines up nicely with a price movement to the $64 - $70 zone, assuming there's a quick buy-up. The MACD usually doesn't confirm a reset for the next move up until it falls below the median line and crosses upward again with conviction. Conviction is key here, it can't be a half-assed cross over like those 2 emo kids. Thirdly, we have the EMAs. The values I use are Fib values: 9 (blue), 13 (purple), 21 (red), 55 (yellow), 200 (Sasha Grey), 600 (light grey). There's a nifty rule I found works great after major moves: * If after a major move the price falls below the 9 EMA and fails to get back above on retest, we're going to the 21 EMA. * If the price falls through the 21 EMA and fails to get back above on retest, we're going to the 55 EMA. * If the price falls through the 55 EMA and fails to get back above on retest, we're going to the 200 EMA. * You get the point, same for the 600 EMA. Right now, it's failed to get back above the 21 EMA on retest. Guess what the next target is? Now here's the kicker, if it falls through the 55 EMA, the 200 EMA is waiting for the price right at the neckline of the W pattern, with the 600 EMA resting right on the 0.5 Fib retracement when measured from the major low to the major high (dotted line Fib retracement on the right). Coincidence? Who knows. "OK smartass, so what happens when we fall through ALL the EMAs then?" I hear you ask. First, don't be a wickhead. There's an order to these things. Everything has its own gravity in the charts, which is why I described everything above in that order. What has the most gravity, I believe, is the .618. That's at around $46 - $49. If the price falls through all the EMAs, that is the next major safe target. I say safe because of risk level. Sure, it could wick as low as the thick blue support trend line, but price will generally equalise at the .618 over time and it's generally where buy orders fill when these EMAs are broken. Placing any below there is an idea, but they're less likely to fill. "Damn it Shifty, why didn't you just call the .618 instead of wasting our time with your crap about colourful lines and levels that sound like pasta?". Well, because each of those steps has it's own trading opportunities, particularly the EMA rule. On a lower timeframe, the trades in the EMA zones alone when you reference the weekly are gorgeous. I hope this is helpful to someone out there who could play around with these concepts on other charts. I have other rules that I've come up with to do with Fibs and EMAs, so if you liked this crappy dad-joke of a lesson, let me know in the comments and I might go into more stuff down the line :) Stay safe all and happy trading!
TVC:USOIL
by Shifty-Ifrit
2
DYDX bearish divergenceLike some other DEX (Decentralized Exchange) cryptos, DYDX had made a 125% jump from its ATL at $1 on 18/06. A very nice performance which indicates that DYDX is a very intesting symbol to keep an eye on. However, at this time DYDX is showing some weakness. A bearish divergence and an Evening Doji Star candle are being formed (in 12H TF). As a consequence, a double top will be formed as well. For these reasons, a short setup is proposed as in chart. Enter when the current candle finishes in red Invalidation is when there is a 12H candle closing above $2.15 Targets are the blue lines and Stoploss is the red one. In my opinion, $1.7 is a strong support where DYDX will strongly bounce. We need to observe the reaction of DYDX at this level to see if a continuation or a reversal will be the next move (provided that the first leg down to $1.7 will have been done).
Short
by evasivesteering
4