Please do your own research and this is not any shape or form of financial or trading advise. In fact, don’t believe a word I am saying here nor analyze the illustration I am posting above. I am simply expressing my thought process.
On the daily chart of ETHUSD, I noticed two bullish divergences on MACD histogram. Price is moving down in this illustration but MACD is not showing the same level of response where arrows are drawn in blue and magenta color.
After the first bullish divergence, the price went up for little bit but it did not reverse the bearish trend.
After the second bullish divergence, the price is moving higher in the short term but how far will it go up? Will the second bullish divergence change the direction of recent bearish trend or perhaps continue in bearish direction after short term gain?