PRICE vs MOMENTUM forming a compression divergence. Notice the lower indicator and the trend on both sides. Price has been broadening the last few years while momentum/strength has been compressing. This is a hidden bull diverging into a massive bear divergence with the potential for a 3x touch here soon. Hidden divergences are historically weaker than regular divergences so the odds are in the bear's favor. We'll just have to see which one the CB's are rooting for.
Note
Critical week! Take note of the arrow. We need to see a red candle and a lot of volatility to convince me that the bear will win. If price breaks above and we print a green weekly, it could be ridiculously bullish. My preference is a bearish move with a nice correction over the next month or two. But what I want is irrelevant. I must try to interpret the data as it prints.Disclaimer
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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.