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Bearishdivergence

BITCOIN - Time to be Bearish!The 3-day chart shows a bearish divergence on the RSI indicator. -A bearish divergence occurs when: 1. Price Action: The asset's price forms higher highs (uptrend). 2. RSI Indicator: The RSI forms lower highs instead of following the price This divergence suggests that the upward momentum is weakening, even though the price is climbing, which could lead to a potential downtrend or correction. Based on this a drop to the 80k region is expected, which aligns with the 0.618 Fibonacci level. This decline perfectly corresponds to the fourth wave of the Elliott Impulse Wave. Afterward, a significant recovery is expected, representing Bitcoin's final bullish wave in the Elliott Wave cycle (the fifth wave) My outlook for the chart suggests a decline starting now and lasting until mid-February at most Best regards Ceciliones🎯
Short
by ceciliones
1
Reversal Trading Strategy Using GOLDEN RSI Divergence Indicator Overview Reversal trading strategies capitalize on identifying turning points in the market where a potential reversal from a downtrend to an uptrend, or vice versa, occurs. In this post, I will introduce a strategy based on divergence patterns spotted with a custom RSI (Relative Strength Index) indicator. This method enhances traditional RSI analysis by making divergence detection clearer and actionable. By combining it with a strong understanding of price action, traders can gain an edge in timing market reversals effectively. Key Features of This Strategy Divergence Analysis: The core of this strategy is to identify bullish or bearish divergences between the RSI and price action. Custom RSI Indicator: The custom RSI indicator simplifies divergence detection by highlighting critical levels and marking divergence points directly on the chart. Confluence with Price Action: Reversals are validated using trendlines, support/resistance zones, and candlestick patterns. Chart Example: S&P 500 Index In the attached chart: Bullish Divergence: The price made lower lows, while the RSI made higher lows (indicated by green arrows). This divergence signaled weakening bearish momentum and potential reversal. Entry Point: A clear breakout above the trendline validated the reversal. Enter long positions near this breakout level. Stop Loss: Place the stop loss just below the recent swing low. Target Profit: Aim for the next major resistance zone or use a fixed risk-reward ratio (e.g., 1:2 or 1:3). How to Spot Divergence Bullish Divergence: Price forms lower lows. RSI forms higher lows. This indicates waning bearish pressure and a potential upward reversal. Bearish Divergence: Price forms higher highs. RSI forms lower highs. This suggests weakening bullish pressure and a possible downward reversal. Why This Strategy Works Strength of RSI Divergence RSI divergence reflects the loss of momentum in the current trend. By detecting it early, traders can position themselves ahead of major reversals. Combining Confluence Factors The success rate of this strategy increases when RSI divergence aligns with other technical factors like: Horizontal support or resistance levels. Trendline breaks. Volume spikes. Practical Tips for Using This Strategy Use Multiple Timeframes: Confirm divergence signals on higher timeframes for stronger setups. Avoid Overtrading: Only act on clear and validated divergence setups to minimize false signals. Risk Management: Never risk more than 1-2% of your trading capital on a single trade. Conclusion This custom RSI-based divergence strategy is a powerful tool to identify high-probability reversal setups. When combined with proper risk management and confluence analysis, it can significantly improve trading outcomes. Start experimenting with this strategy on your demo account and refine your approach before deploying it in live markets. If you have questions or want to discuss this further, feel free to comment below!
SP:SPXEducation
by thejamiul
20
#GBPCAD bearish scenarioBearish divergence in the 4H timeframe, as well as price failing to create a new high, shows potential weakness in the uptrend. Furthermore, from an Elliott wave perspective, it seems like we are at wave 5 of 5, with a high potential for a bearish move from here. In the 1H timeframe, we can see that the price managed to break below the previous higher low, successfully changing the structure towards bearish in the 1H timeframe. Let me know if you would like me to publish an analysis in a lower timeframe on this chart to take advantage of this rally.
Short
by mohemati
6
#AUDNZD bearish move possibilityAs can be seen in the chart, we have bearish divergence in the 4H and daily timeframes, suggesting that the price might have reached the end of its bullish move. Furthermore, in the 1H timeframe, the price has managed to shift market structure towards bearish by breaking below the previous higher low. Now, the price seems to be completing a pullback to the broken short-term trendline and previous support zone, which now act as resistance. Let me know if you would like me to publish an analysis in a lower timeframe on this chart to take advantage of this rally.
Short
by mohemati
8
Bitcoin Head and Shoulders dip to $60,500OKX:BTCUSDT has created a classic Head & Shoulders pattern on the daily timeframe. If it confirms below the neckline, we could see a pullback to $60,500 - the same distance from the peak of the Head to the neckline from the breakdown. This is not actionable until it confirms, when a candle closes lower than the first candle closing below the breakdown. Given the institutional interest and price manipulation, this could be turned around by market makers, so I won't be entering a short, or exiting my spot positions, until I see confirmation on the daily timeframe. However, I could also see those who manipulate the markets wanting a lower entry for large amounts of institutional capital - so the price could likely be manipulated either way. What the chart tells us is this is a big bearish signal to be monitored. There is also a Bearish Divergence on the RSI, which isn't actionable by itself, but does add a layer of confluence.
Short
by tokentradertv
1
AVAX/USDT is about to do a Bearish movement!!!Hi. COINEX:AVAXUSDT Today, I want to analyze AVAX for you in a 3D time frame so that we can have a mid-term view of AVAX regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). AVAX reached the resistance but could not break it. Also, we have a bearish divergence on MACD and RSI that the price will soon decline. ✅ Due to the Descending structure of the chart... - High potential areas are clear in the chart. - DIVERGENCE ON MACD - DIVERGENCE ON RSI Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
Short
by CobraVanguard
10
Regular Bearish Divergence on the 4H UNI/USD (Uniswap)**UNI/USD 4H Chart Analysis** As we examine the 4-hour chart for Uniswap (UNI/USD), a noteworthy pattern emerges, signaling potential trading opportunities. The price trajectory is forming higher highs, a bullish signal under normal circumstances. However, a deeper look with the Commodity Channel Index (CCI) reveals a contrasting picture. The CCI is making lower highs, presenting a classic case of bearish divergence. This divergence suggests weakening momentum despite the rising prices and could foreshadow a possible reversal. Moreover, UNI's price movement above the weekly pivot point, which stands untouched at $7.432, draws attention. Typically, untouched pivots act as significant levels of either support or resistance. In this context, surpassing this pivot without retest might indicate it as a plausible target for initiating a short position, particularly if other indicators support a downward shift. Traders should monitor these developments closely, considering the bearish divergence and pivot dynamics, to refine entry and exit strategies in the coming sessions.
KRAKEN:UNIUSDShort
by TradingClue
AUDCHF 4H Analysis: Bearish DivergenceAUDCHF's recent trend exhibits bullish behavior with prices achieving higher highs above the R1 monthly pivot, suggesting strength. However, beneath the surface, signs of caution emerge. The Commodity Channel Index (CCI) displays lower highs, creating a bearish divergence against the price's higher highs. This divergence hints at weakening upward momentum, urging traders to stay vigilant. Further signaling a potential shift, the Moving Average Convergence Divergence (MACD) teeters on a bearish crossover . Such a move could forecast a momentum downturn. Additionally, an untouched monthly pivot at 0.58496 beckons, potentially drawing prices down in a correction. Compounding the cautious outlook, the Relative Strength Index (RSI) retreats from overbought territory , aligning with indicators suggesting a cooling phase may be on the horizon. In essence, while the bullish trend above the R1 pivot indicates strength, emerging signals from CCI, MACD, and RSI suggest a momentum shift, with a pullback to 0.58496 as a conceivable target. Traders should monitor these developments closely and adjust strategies accordingly.
Short
by TradingClue
NASDAQ: Potential Bearish Reversal - Short SetupThesis: Geopolitical uncertainty (war) may trigger risk-off sentiment. Sideways price action suggests distribution pattern forming. Bearish divergence on higher timeframes indicates weakening momentum. ABCD pattern supports a potential reversal from the distribution zone. Entry: Short below the distribution support level (yellow rectangle on your chart). Stop Loss: Above the distribution resistance level (yellow rectangle on your chart). Target: Open to interpretation based on your risk-reward profile, but consider key support levels below. Risk Management: Clearly define your risk tolerance and position size before entering the trade. Notes: This is a swing trade idea, so a longer time horizon may be required. Keep an eye on news and economic data releases that could impact market sentiment. Manage your trade actively and adjust your stops as needed.
OANDA:NAS100USD
by abubakarmansoor
1