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Kaspacoin

Kaspa – Could this finally be the moment I'm right? TA + TPDescending Trading Channel: KASPA is currently trading within a well-defined descending channel, with both resistance and support levels guiding its movement. The price has consistently rebounded from the lower support line while facing rejections near the upper resistance line. Potential Reversal Signals: RSI (Relative Strength Index): The RSI is currently around the 39 level, suggesting that KASPA may be entering an oversold zone. This could indicate a potential reversal if the RSI crosses the 40-50 threshold. Stochastic Oscillator: Showing a reversal from oversold conditions, implying a possible short-term bullish momentum. VMC Cipher & HMA Histogram: The VMC Cipher indicator and HMA histogram are showing early divergence signals and possible upward momentum, indicating potential price strength if the pattern continues. Breakout Probability: If KASPA manages to break above the descending channel’s resistance with sufficient volume, it could signal a bullish breakout. A breakout above $0.12 with strong momentum could potentially lead to a mid-term upward trend. Trading Plan Entry Points: Aggressive Entry: Enter at the current price around $0.115, anticipating a breakout from the descending channel. Conservative Entry: Wait for a breakout above $0.12 with a retest and confirmation of support, minimizing the risk of a false breakout. Stop-Loss Placement: Place a stop-loss slightly below the current descending support line, around $0.11, to limit potential losses if the price reverses downward. Profit Targets: Target 1: $0.14 (near previous highs within the channel). Target 2: $0.16, aligning with the upper trend lines in a possible new uptrend. Target 3 (Long-Term): New all-time high (ATH), estimated around $0.22 if momentum sustains. Time Estimation for New ATH: Based on previous price cycles and behavior, a bullish breakout from the descending channel could gradually drive the price toward a new ATH in approximately 2-3 months. This timeline considers consolidation phases and typical market momentum seen in KASPA's previous movements. Risk Management: Use 1-2% of the portfolio per trade to manage exposure. Adjust stop-loss and targets as the trade progresses, monitoring for potential corrections or unexpected reversals. This trading plan and analysis anticipate a bullish breakout based on the current technical setup. However, always monitor for confirmation and adjust for new market conditions.
CRYPTO:KASUSDLong
by elfabiiani
3
KASPA trading plan and technical analysis (4h chart frame)Technical Analysis + trade plan by Blaž Fabjan Pattern: Falling Wedge The chart shows a clear Falling Wedge pattern, which is typically a bullish reversal signal. This pattern is characterized by a downward sloping resistance and support line that converges. A breakout from this pattern often leads to a price surge. The breakout is expected as the price is nearing the end of the wedge and has touched the support line multiple times. Support and Resistance: Resistance Line: The upper boundary of the wedge acts as a resistance level. A successful breakout would target higher price levels. Support Line: The lower boundary of the wedge acts as support and has held several times. Indicators: RSI (Relative Strength Index): The RSI is around 38.57, indicating that the asset is close to oversold territory. A bounce is likely once the RSI dips further or consolidates. Stochastic RSI: Currently, the Stochastic RSI is at 30.08 and 37.92. This also indicates a potential reversal from oversold conditions, supporting the bullish outlook. Volume: The volume has been declining, which is typical before a breakout. Watch for an increase in volume as confirmation of a breakout. VMC Cipher B: The indicator suggests that the downward pressure is easing. A shift towards green momentum waves could signal the start of the upward trend. HMA Histogram: This indicator is showing a very slight bullish crossover, reinforcing the potential for a reversal. Price Action: Price is currently consolidating just above the support of the wedge. This creates a critical juncture, where the next few candles could determine the breakout direction. If the price breaks out of the wedge, expect a retest of the former resistance turned support before moving higher. Trading Plan by Blaž Fabjan: Entry: Aggressive Entry: Enter at the current price (~$0.1366) anticipating an imminent breakout from the falling wedge. Conservative Entry: Wait for a confirmed breakout above the resistance level of the wedge (around $0.145), followed by a successful retest before entering a long position. Stop Loss: Set a stop loss slightly below the wedge support, around $0.127 to $0.129, to limit downside risk in case of a false breakout or continued downtrend. Targets: First Target (T1): $0.160 - This target aligns with the previous high and key resistance. Second Target (T2): $0.180 - If the momentum continues, this level could be reached, representing a measured move from the wedge breakout. Third Target (T3): $0.200 - For more aggressive traders looking to hold longer, this level represents a strong psychological resistance. Risk Management: Position sizing should be calculated based on your risk tolerance, but a 2-3% risk per trade is generally recommended. Ensure you are not overexposed. Use a trailing stop once the price reaches the first target to lock in profits while allowing for further upside. Confirmation: Watch for an increase in volume and strong bullish candles breaking through the wedge's resistance line to confirm the breakout. If the price fails to break out of the wedge or closes below the support, the pattern is invalidated, and short-term bearish action could continue. Conclusion: The falling wedge pattern and supporting indicators suggest a potential bullish breakout in the near term. A well-planned entry near the breakout, combined with a proper stop-loss and profit targets, offers a favorable risk-reward ratio for this setup. Be cautious of potential false breakouts and follow through with the technical signals closely.
Long
by elfabiiani
1
KASPA TECHNICAL ANALYSIS + TRADE PLAN 2024 BY BLAŽ FABJANTA+TRADE plan by Blaž Fabjan Descending Triangle Formation: A clear descending triangle pattern is observed with lower highs (resistance) and a horizontal support around the $0.14 level. This is typically a bearish pattern, but in some cases, it can lead to a breakout to the upside. The current price is close to the triangle’s apex, indicating a potential breakout soon. Support and Resistance Levels: Resistance: The downtrend resistance line is around $0.145 to $0.15. A break above this level would indicate a bullish reversal. Support: The horizontal support around $0.14 has been tested multiple times. If the price breaks below this, it could trigger a further decline toward the next major support at around $0.13. Indicators: Volume Moving Average Convergence Divergence (VMAC): There are visible divergences, suggesting that momentum might be building. The overall indicator seems to support a bullish divergence. Relative Strength Index (RSI): The RSI is near the oversold region (~35.49). This suggests that selling pressure might be easing, and a reversal could be imminent. Stochastic Oscillator: The stochastic is near oversold levels, which often precedes a bullish move if it crosses upward. Hull Moving Average (HMA): The histogram is showing signs of reduced bearish momentum, with green candles suggesting a possible bullish shift. Trading Strategy Bullish Scenario (Breakout to the upside): Entry: Consider entering a long position on a confirmed breakout above $0.145-$0.15 (the resistance line). This would signal the end of the descending triangle and likely lead to upward momentum. Target 1: $0.17, which would align with the projected move from the triangle breakout. Target 2: $0.19, a previous high and psychological resistance level. Stop Loss: Place a stop loss below $0.138 to minimize risk in case of a false breakout or bearish continuation. Bearish Scenario (Breakout to the downside): Entry: If price breaks below the $0.14 support level with volume, it could signal a bearish continuation. Short positions could be considered in this case. Target 1: $0.13, the next major support. Target 2: $0.12, the next significant psychological support level. Stop Loss: A stop loss above $0.145 (above the resistance) would minimize risk if the trade reverses. To sum up: The current technical picture is at a critical point with a descending triangle suggesting a potential breakout in either direction. The oversold conditions in the RSI and stochastic, along with possible bullish divergence, lean towards a bullish breakout. However, be prepared for a downside if the $0.14 support fails. Monitoring the volume during the breakout is crucial to confirm the direction and strength of the move.
Long
by elfabiiani
2
Kaspa technical analysis + trade plan (27.09.2024) by BFTechnical Analysis + trade plan by Blaž Fabjan Chart Pattern: Falling Wedge (Uptrend Bias) A falling wedge pattern is present, which typically signals a bullish reversal. In this case, the price seems to be nearing the breakout point of the wedge. The breakout direction is upwards, and this pattern typically leads to a price increase if confirmed. Support and Resistance Levels Resistance Line: The upper line of the falling wedge, acting as dynamic resistance. Support Line: The lower line of the wedge, acting as dynamic support. Volume Volume levels indicate significant interest, especially when approaching a potential breakout zone. The volume profile shows that recent trading sessions have been accompanied by a spike in activity, which can be a good sign for momentum. Indicators VMC Cipher B (Divergences): This indicator shows divergence signals, indicating possible trend reversals. It appears to be bullish with green dots forming at key points, suggesting an upward move. RSI (Relative Strength Index): The RSI is around 54.79, which is neutral but slightly tilting towards bullish. It suggests that the market isn't overbought or oversold. Stochastic Oscillator: Around 75.24, this indicator shows a bullish cross, indicating momentum might be shifting upward, but it's approaching the overbought zone. HMA+ Histogram: Appears to be indicating short-term momentum change as the trend might be shifting upwards. Price Prediction/Target If the falling wedge plays out as expected, the price could target higher levels, breaking the $0.165-$0.170 range. The chart suggests a further upward target in the next phase, as highlighted by the projected arrow and airplane symbol. Trading Plan Entry Strategy: Buy on Breakout: If the price breaks above the resistance line of the falling wedge (around $0.166 or slightly higher), consider entering a long position. Confirmation: Wait for at least a 4-hour candle close above the resistance to confirm the breakout. Aggressive Entry: You could also enter once the price reaches near the support line but remains cautious if the breakout has not been confirmed. Stop Loss: Place a stop loss below the recent swing low or just under the support line of the wedge (around $0.160). This will protect against a potential fake breakout. Take Profit Targets: Short-term Target: $0.175 - $0.180 (the first major resistance after breakout). Medium-term Target: $0.190 and beyond, as indicated by the chart. Risk Management: Avoid risking more than 2-3% of your total portfolio on this trade. Adjust your position size based on the stop-loss distance and your risk tolerance. Monitoring: Keep an eye on the volume and the RSI levels. If RSI enters the overbought zone (above 70), consider reducing your position or securing profits. Watch for any signs of a failed breakout, as this could lead to a sharp drop back into the wedge pattern. Exit Strategy: If the price fails to break out and starts to drop below the support line, exit the trade. If the price hits the overbought zone on both RSI and Stochastic, it might be wise to secure profits at key levels mentioned. Conclusion: The overall outlook based on the chart suggests a bullish breakout is likely if the falling wedge pattern completes. This offers a good risk-to-reward ratio for a long position if managed carefully with proper stop losses and monitoring of key indicators like volume and RSI.
Long
by elfabiiani
KASPA USDT 4H CHART TA+price predictionHi! Today I will analyze Kaspa / Usdt chart on 4h timeframe and I will look up what's following in near future - price prediction. TA by Blaž Fabjan The descending triangle is highlighted, signaling a potential bearish continuation or reversal. 1. Resistance is marked on the chart, suggesting that the price is struggling to break above that level. 2. Support is seen near the base of the triangle. If this support level breaks, a more significant downside is expected. Indicators: VMC Cipher Divergences: Suggesting a mix of bullish and bearish divergences. Current momentum appears bearish, as evidenced by the divergences. However, there could be a potential reversal, depending on the market structure. RSI (Relative Strength Index): Sitting near the lower range (~42.77), which suggests that the asset is not yet oversold, but it's approaching a level that could present a buying opportunity if oversold conditions are met. Stochastic RSI: It appears oversold (~42.35), indicating that a reversal or upward momentum might be due soon. Price Action: The chart shows a potential downward move towards the lower boundary of the triangle, which is marked with an emoji representing the target zone. A bounce from this zone may lead to a bullish breakout, as indicated by the upward arrow. If the price falls below the triangle, the next support is likely around the $0.1500 level (as per the emoji), with a possible further decline if that level is breached. Volume: The volume appears stable, but no significant spikes indicate a strong trend change or momentum yet. Low volume during a potential breakdown would suggest a weaker move, while a volume spike could confirm the breakout/breakdown. Trading Plan Short-Term Outlook (Bearish Continuation): Entry: If the price breaks below the current support at ~$0.1600, short positions could be considered, targeting the next support near $0.1500 or lower. Stop Loss: Set just above the resistance level, around $0.1700, to minimize risk. Target: Short-term targets would be $0.1500 (first support), potentially moving lower depending on market conditions. Bullish Reversal (Medium- to Long-Term Outlook): Entry: If the price bounces off support (as indicated by the chart), wait for confirmation of a reversal before entering. Look for a close above $0.1700 as a bullish sign. Stop Loss: Set below the triangle's lower boundary at ~$0.1550. Target: First target could be around $0.2100, following the chart’s indication of a potential sharp upward movement. Breakouts from descending triangles often lead to significant upward momentum. Confirmation: Wait for confirmation of direction either through volume increase or a clear breakout from the triangle. Trade cautiously within the triangle as price movements could be choppy. In summary, the chart suggests a possible short-term bearish movement towards the $0.1500 level, followed by a potential bullish reversal. Watch for breakout confirmation and act accordingly based on the defined trading plan.
Long
by elfabiiani
KAS/USDT Trading ScenarioThe KAS’s price chart continues to follow an upward trend, with the trendline successfully acting as a support level four times, indicating its significant strength. From a volume profile perspective, the current asset price is in a zone of heightened market participant interest, with a key volume level POC at $0.16833. After the news about a potential Fed rate cut, a short-term correction is likely, as the market has probably already priced this event in. In this case, we may see sell-offs following the news release. However, in the long term, growth potential remains, with the trendline, once again being tested, serving as a possible reversal point.
by Rick_SimpleSwap
KASPA / USDT 4H TIMEFRAME MEXC TECHNICAL ANALYSISFalling Wedge Pattern: The chart shows a falling wedge pattern, which is a bullish signal. This pattern suggests that the price might soon reverse and move upward. Oversold Conditions: The RSI and Stochastic RSI indicators are in the oversold zone. This typically means that the asset is undervalued and could see a price increase soon. Volume Spike: There's a noticeable increase in trading volume as the price reaches the bottom of the wedge. This suggests strong buying interest and supports the idea of an upcoming upward move. Potential Price Target: If the price breaks out of the wedge, it could move toward the $0.22 to $0.24 range, as shown by the projected arrow on the chart. Conclusion: The chart suggests a potential bullish reversal. If the price breaks above the wedge, it could lead to a significant upward move. Keep an eye on the breakout level and consider managing risk by setting a stop-loss below the recent low. This analysis highlights the key factors indicating a potential price increase for the KAS/USDT pair.
Long
by elfabiiani
#Kas 1W chart; Is the MM manipulating?CRYPTOCAP:KAS 1W chart; It has managed to surpass the Ath level high it reached in February 2024 4 times but failed to close above it. With its performance since the beginning of this week, it has managed to reach an all-time high. However, it is obvious that MM is manipulating here. Even if it closes above this level, the negativity on the RSI side shows us that a decline may be coming. Therefore, a decline of about 25% would not be a surprise. ⏳
Short
by ugurtash
2
KAS below channel with C&H pattern + ascending triangleKAS is booming in popularity on Twitter/X. Proof of work token featuring BlockDAG technology. BLOCKDAG Feature: multiple transactions are added to blockchain in a web-like formation vs BLOCKCHAIN: Single transactions added to the chain in a single line. Cup and Handle Pattern formed and playing out. Turned into an Ascending Triangle. Both of these are large bullish formations. Future Resistances based on Fibonacci Levels: $0.23, $0.30, $0.38 Triangle Invalidation Level: $0.155 Support Levels: $0.14, $0.13, $0.125 Average Volume increasing from last month.
Long
by CryptoMitchX
3
Technical Analysis of KAS/USDT (4-Hour Chart) #kaspa $kas #usdtTechnical Analysis of KAS/USDT (4-Hour Chart) by Blaž Fabjan The chart displays a falling wedge pattern, which is typically a bullish formation, indicating a high probability of an upward breakout. Indicators: VMC Cipher B Divergences: This indicator shows bullish divergences at multiple points, supporting the possibility of an upward breakout. RSI (14): Currently at 39.82, indicating the market is somewhat oversold and we may expect price growth. Stochastic Oscillator (14, 1, 3): Values are 34.88 and 36.88, indicating an oversold condition, often a buy signal. Recommended Entry Points for Trading: Intra-Day Trading: Entry: $0.145 (at the current price or upon a slight dip) Target Price: $0.155 (first resistance level) Stop Loss: $0.140 (to protect against significant losses) Swing Trading: Entry: $0.145 (at the current price or upon a slight dip) Target Price: $0.165 - $0.170 (potential breakout from the falling wedge) Stop Loss: $0.135 (to protect against significant losses) Recommended Exit Points for Trading: Intra-Day Trading: Exit Price: $0.155 Alternative Exit Price: $0.150 (if the market shows signs of weakness) Swing Trading: First Target Price: $0.165 Second Target Price: $0.170 Exit Price on Reversal: $0.135 (to protect against significant losses) Summary: Based on the technical analysis and applied indicators, the current trend for KAS/USDT is positive, with potential for an upward breakout from the falling wedge. Recommended entry points are at the current price of $0.145 with target prices of $0.155 for intra-day trading and $0.165 - $0.170 for swing trading. Closely monitor the market and use stop loss to protect against unexpected downturns.
Long
by elfabiiani
KAS: Pullback in UptrendTrade setup : Following a breakout from Falling Wedge pattern and above 200-day moving average, price signaled resumption of Uptrend. However, it reached $0.19 resistance where it got rejected in February and was also very overbought (RSI > 80), and pulled back on profit taking. This is almost identical situation to that in February. We would be buyers on pullbacks near $0.15 support area for another swing trade entry with +25% upside potential back to $0.19. Stop Loss (SL) at $0.138. If price breaks above it's ATH of $0.194, the next possible resistance levels (price targets) based on Fibonacci Extensions are: $0.207 (61.80%), $0.223 (78.60%), $0.243 (100%) and $0.30 (161.80%). Pattern : Pullback in Uptrend. Price remains in an Uptrend but has pulled back, which could present a 'buying dip' opportunity. Traders should look for the nearest support level where price could stabilize and resume its Uptrend. This support level could be a level where price bounced off of in the past, or a level that was previously resistance. (concept known as polarity).Learn to trade key levels in Lesson 3. Trend : Short-term trend is Strong Up, Medium-term trend is Strong Up and Long-term trend is Strong Up. Momentum : Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70). Support and Resistance : Nearest Support Zone is $0.15, then $0.13. Nearest Resistance Zone is $0.194, then $0.24.
Long
by altFINS
KASPA: Pullback in UptrendTrade setup : Following a breakout from Falling Wedge pattern and above 200-day moving average, price signaled resumption of Uptrend. However, it reached $0.19 resistance where it got rejected in February and was also very overbought (RSI > 80), and pulled back on profit taking. This is almost identical situation to that in February. We would be buyers on pullbacks near $0.15 support area for another swing trade entry with +25% upside potential back to $0.19. Stop Loss (SL) at $0.138. If price breaks above it's ATH of $0.1.94, the next possible resistance levels (price targets) based on Fibonacci Extensions are: $0.207 (61.80%), $0.223 (78.60%), $0.243 (100%) and $0.30 (161.80%). Pattern : Pullback in Uptrend . Price remains in an Uptrend but has pulled back, which could present a 'buying dip' opportunity. Traders should look for the nearest support level where price could stabilize and resume its Uptrend. This support level could be a level where price bounced off of in the past, or a level that was previously resistance. (concept known as polarity).Learn to trade key levels in Lesson 3. Trend : Short-term trend is Up, Medium-term trend is Strong Up and Long-term trend is Strong Up. Momentum is Bullish but inflecting. MACD Line is still above MACD Signal Line but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum could be nearing a downswing. Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70). Support and Resistance : Nearest Support Zone is $0.15, then $0.13. Nearest Resistance Zone is $0.194, then $0.24.
Long
by altFINS
KASPA: Pullback in UptrendTrade setup : Following a breakout from Falling Wedge pattern and above 200-day moving average, price signaled resumption of Uptrend. However, it reached $0.19 resistance where it got rejected in February and was also very overbought (RSI > 80), and pulled back on profit taking. This is almost identical situation to that in February. We would be buyers on pullbacks near $0.15 support area for another swing trade entry with +25% upside potential back to $0.19. Stop Loss (SL) at $0.138. Pattern : Pullback in Uptrend . Price remains in an Uptrend but has pulled back, which could present a 'buying dip' opportunity. Traders should look for the nearest support level where price could stabilize and resume its Uptrend. This support level could be a level where price bounced off of in the past, or a level that was previously resistance. (concept known as polarity).Learn to trade key levels in Lesson 3. Trend : Short-term trend is Strong Up, Medium-term trend is Strong Up and Long-term trend is Strong Up. Momentum is Bullish but inflecting. MACD Line is still above MACD Signal Line but momentum may have peaked since MACD Histogram bars are declining, which suggests that momentum could be nearing a downswing. Price is neither overbought nor oversold currently, based on RSI-14 levels (RSI > 30 and RSI < 70). Support and Resistance : Nearest Support Zone is $0.15, then $0.13. Nearest Resistance Zone is $0.19.
Long
by altFINS
KASPA a Technical Marvel Kaspa MEXC:KASUSDT is displaying an beautiful technical chart, showcasing a high degree of respect for key levels. Your support means the world, so smash that like button to keep the motivation flowing! 💙💛 The current price action forms a compelling Symmetrical Triangle , setting the stage for next move. Let's jump into the details! Key Support Levels: $0.080 $0.093 $0.114 These support levels act as robust foundations, indicating potential bounce-back points in the event of a downturn. Key Resistance Levels: $0.143 $0.177 These resistance levels represent significant hurdles that Kaspa must overcome to move in a sustained upward trajectory. The presence of a Rising Fibonacci Channel adds another layer to the chart's complexity, reflecting a dynamic uptrend environment . This suggests that Kaspa is in a phase of positive momentum, further enhancing its overall bullish outlook. As the symmetrical triangle tightens its grip, we should closely monitor the breakout direction for potential trading opportunities. Keep a watchful eye on Kaspa as it navigates through these critical levels, presenting exciting prospects for those attuned to the nuances of this technical masterpiece.
CRYPTO:KASUSD
by ArShevelev
KASPA vs USDT - KASUSDT IdeaKUCOIN:KASUSDT MEXC:KASUSDT ⚠️ Disclaimer: The following insights reflect my personal perspective on the market, relying on publicly available information and historical data. While some opinions stem from my actual trades, others do not. I am not a financial advisor, and I bear no responsibility for your trading choices. ✅ Feel free to reach me out with any questions or recommendations. I am more than willing to assess and analyze any currency pair or index that piques your interest.
by Arash-RK
16
KASPA middle term targetsMEXC:KASUSDT Possible Targets and explanation idea ➡️Since summer 2022 KAS gain over 25000% without corrections ➡️Since listing on MEXC we are only in distribution zones on weekly ➡️Waiting potential small correction and pump to 0.5 extension fib level 0.06 ➡️Forming divergency and TD pattern before massive correction after October/November ➡️In accumulation zone to everyone who wanna buy again will be time for accumulation ➡️At 0.06 people who bought at listing price will be in 12000% gains profit. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Short
by Crypto4light
4
KASPA very bearish..After my VERY SUCCESFUL prediction about Kaspa, im back again. Kaspa is entering bearish period. As you can see with the latest breakout to ATH (0,054) Volume was even lower than previous times, which is absolutely bearish. After the breakout, KASPA immediatly dumped to 0,043, which is another bearish sign. It seems whales just wanted to exit and needed a little bit liquidity (which they are not getting). Beside of this, You see Kaspa has made DOUBLE TOP, this is one of the most bearish patterns, I dont see Kaspa going any higher and i expect a huge dump towards at least 0,025. BE CAREFUL. My PREVIOUS prediction about Kaspa was PERFECT: MEXC:KASUSDT KUCOIN:KASUSDT CRYPTO:KASUSD COINEX:KASUSDT
Short
by realmadrid2015b15
49
Kaspa/USDT Bearish Divergence on Weekly WITH DOUBLE TOP?!PLEASE READ CAREFULLY: Bearish divergence is typically recognized through the following characteristics: Price Highs vs Indicator Highs: In an uptrend, the price of an asset tends to make higher highs, indicating increasing buying pressure. However, if during this time, the indicator (e.g., RSI or MACD) fails to make higher highs and instead forms lower highs, this creates a bearish divergence. Signaling Potential Reversal: Bearish divergence signals a potential weakening of the ongoing uptrend and can suggest that the buying momentum is fading. It might indicate that the uptrend could be losing steam and that a trend reversal or a corrective move might be on the horizon. Confirmation Required: It's important to note that bearish divergence alone is not a guaranteed signal of a trend reversal. Traders and analysts usually wait for additional confirming signals before making trading decisions. This could include looking for candlestick patterns, trendline breaks, or other technical patterns that align with the potential reversal. Here's a simple example: Imagine you are looking at the price chart of $KAS which has been in an uptrend. The price makes higher highs, reaching new peaks. However, when you look at the RSI indicator, you notice that it's not making higher highs and instead is forming lower highs. This discrepancy between the price movement and the RSI is a bearish divergence and might suggest that the bullish momentum could be waning. Keep in mind that while bearish divergence can be a useful tool in technical analysis, it's not foolproof, and false signals can occur. It's important to use it in conjunction with other technical indicators, fundamental analysis, and risk management techniques to make informed trading decisions.
Short
by The3eyedFrog
1