As shown, there are 2 things that will push it down. The MACD
and the ADX
. There is divergence in the MACD
, therefore, there is already a ticking bomb to push it down. Also, in a book by Linda Bradford Raschke, we have a 10-bar divergence signal. The ADX
is low, meaning that strong movement will be made, and with the MACD
showiing lower highs than previous, There should be a strong movement down.