When observing a potential correction for an bearish divergence, it suggests a warning sign in the market that a downward correction may be on the horizon. Bearish divergences occur when the price of an asset forms higher highs while the corresponding indicator shows lower highs. This disparity can indicate weakening upward momentum and a possible reversal in the near future.
Trade closed: stop reached:
trade close, there was no significant correction. it went straight bearish.