Bearish divergence in stock trading occurs when the price of an asset forms higher highs while the corresponding indicator, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), forms lower highs.
This suggests weakening momentum and potential for a downward move in price. The possibility of a move down depends on various factors such as market conditions, volume, and other technical indicators, but it indicates a higher probability of a downward correction or trend reversal.
In trading, all we have is probability and risk management. I’m entering at the re-test of today’s low. Join me.
This suggests weakening momentum and potential for a downward move in price. The possibility of a move down depends on various factors such as market conditions, volume, and other technical indicators, but it indicates a higher probability of a downward correction or trend reversal.
In trading, all we have is probability and risk management. I’m entering at the re-test of today’s low. Join me.