What is a bearish divergence?What is the Moving Average Convergence Divergence (MACD) Indicator?
The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator. The indicator tells us the relationship between two moving averages of the security price. To determine MACD subtract the 26-period exponential moving average from the 12-period exponential moving average. There is a nine-day exponential moving average of the MACD that is used as the "signal line." Whenever MACD crosses the signal line that is an indication to sell or buy.
The histogram indicates strength. Dark green means the bulls are stronger. Light green means the bulls are weak. Dark red means the bears are strong. Light red means the bears are weak. The centerline for MACD is 0.
What is a bearish divergence?
A bearish divergence occurs when the price rise to a new high but the indicator new peak is lower than the previous high peak.
Forecastability of the bearish divergence
The bearish divergence indicator predicts a bearish future for the stock. However, do not assume a bearish divergence will be bearish all the time. There is an exception: in a strong bull market, the bearish divergence will transform itself and the uptrend may continue.
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Greenfield
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Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
Bearishdivergence
BTC - TRADING IN THE ZONE - AT A GLANCE - D1-H4-H1D1 : Sharp reversal in progress.
Indeed current candle is showing a potential bullish engulfing pattern.
Nevertheless, it should be confirmed on a closing basis later on today !
H4 : Potential double top formation in progress, supported by bearish divergences
on 4 technical indicators !!!
Last candle triggered a strong upside move from 46100 towards an intraday high
of 48481...
Warning, we can not ruled out a mirror effect, which if happens would target
again the critical support level of MBB currently slightly above the 46000 area
H1 : Also showing bearish divergences...
Watch carefully shorter time frames (M15 and M5) to get early confirmation signal (s)
of the ongoing bearish price action expressed above !
CONCLUSION : Today's closing on D1 will give the tone for upcoming sessions. watch
my post called Heat Map posted on last Monday morning b4 "Elon help...)
Ethereum in the bearish divergences zones!!!At the moment, the price of Ethereum it's go to down and we see that Ethereum it's need to find down the zone of $1,440 USD. that will be a possible conirmation to entry in the bull market in the $1,440 USD, the important and psycological point to bought.
But we see in H1 timeframe that Ethereum it's formed a little bearish risign wedge, but if you see in H1 timeframe, we're go to the bearish trend pressure to sell. For that, I put a short position in Ethereum from $1,720 USD approximately and my SL it's so little in the $1,810 USD, the risk it's so minimu as 5% agains the possible earns of 16% to short Ethereum. i'm sell Ethereum
In H8 chart, we see that Ethereum it's formed a bullish channel, and we see that the price action it's speak us to sell. The same in H4 timeframe that we see a bearsih candlestick group that they speak to sell Ethereum.
And then, we see in Daily that a correction it's so necceary to Ethereum continue up!!! This senario could be possible and we see a 2 doji of indecisio that mark that the trend could to supposed a possible reversal to down becuase there's demand below at least of $1,440 USD.
If you have a short or long trade plan, you can to post here about this idea of Ethereum. Guys, if you like this analysis, I Invite you to support this idea for others traders.
Short with two Fibonacci targets.We have dragonfly dojis and a bearish engulfing on the daily with mass amounts of bearish divergence i will short this and target two levels for profit taking.
Is GME trading in another GIANT Ascending Triangle???It appears as though another Ascending Triangle is forming for GME, notice the series of higher lows at the upward green sloping line of support, it's interesting to see a bounce off of the old resistance of the previous Ascending Triangle in blue, inherently bullish.
There's merit for an inverted H&S pattern as well, the green human icon is the head of the pattern.
The RSI is displaying higher lows coinciding with the price action, and there's noticeably a bearish divergence that started Jan 25th, 2021. There has been a slight deviation where I've placed the blue sideways pointing finger, but their downward sloping resistance creating a series of lower highs has been pretty accurate, despite the price increase and choppy sideways price movement. The RSI has cooled off a little potentially indicating further upside action....
On the KST it's pretty neutral and I wouldn't be surprised to see a bullish cross next week where I've placed the blue finger.
VIX held the key to the heads up for a cliff hanger...Seen here is the VIX chart, and notably, two segments are highlighted.
First the Green box where VIX dropped to 21 as SPX rose higher.
However, later on, in the Red box area, a siumilar rise to the same level was not concomitantly seen with VIX retracement. In fact, the VIX was resilient in holding its ground at a higher level.
Subtle, but very significant.
A good learning point and we should see more of such... usually the downside moves are significant under these circumstances.
GBP/USD expected movement in the coming daysHi every one
British Pound / U.S. Dollar
GBPUSD has formed a rising wedge pattern which means that the price would decrease
Wait until the breaking of the pattern!
There is also a regular bearish divergence (-RD) which means that this signal is much stronger!
Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad.
Things can change...
The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Thank you for seeing idea .
Have a nice day and Good luck.
Ascending Triangle for GME?Wow, it's nice to see some short-sellers get roasted, bulls get money, bears get money, and pigs get slaughtered.
GME appears to be trading in a GIANT ascending triangle, notice on the RSI there has been a lower high creation for the third consecutive time since January 22nd, but the share price increased and now may be forming a bearish divergence inside of a descending triangle formation.
On the KST there's been a bullish cross, nice!
GIANT Bull Flag Or Descending Triangle for BTC!!Bitcoin has found some bullish support at the horizontal base of the pattern, this area is going to need to hold if we're going to see continued upside price action.
The RSI is forming lower high after lower high, clearly a bearish divergence noticeable since back in December 2020.
On the KST we've seen a bullish cross.
GBP/USD on an ascendHi every one
British Pound / U.S. Dollar
GBP/USD chart has formed a ascending triangle which means the price will rise but just as high as measured price movement(AB) so It means AB=CD and we expect the growth to be like that, WAIT FOR BREAKING And the closing of the candle
Bearish Divergence shows us that prices will fall
Traders, if you liked this idea or have your opinion on it, write in the comments, We will be glad.
Things can change...
The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Thank you for seeing idea .
Have a nice day and Good luck.
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.
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.
Bearish engulfing candle on NZDCHFThe cross pair is showing bullish weakness and chances are price action will dictate bullish sentiment based on a touch of upper trendline. Rsi and PA are diverging thus strengthening the bearish sentiment. Trade settings are shown on the chart. Stops will be trailed according to PA.