texagg22
Short

Extreme Bearish Divergence Means Blood Ahead

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
Hello! I first want to thank all of my followers for their likes, comments and support! I learn just as much from your comments and your charts as you do (hopefully) from mine. I will be the first to admit I get the charts wrong often! However that is the nature of the beast.

Today I present a very interesting bearish 3day divergence that is currently printing. Just like at the bottom of the bear market we made lower lows while the rsi made higher lows, so right now we are doing just the opposite. As price grinds up on low volume the RSI is printing lower highs as price prints higher highs.

What does this mean? Well it means the trend is weakening and a significant pull back is ahead. I tried to time the pull back earlier this week and was liquidated as I shorted with 10 leverage and got rocked on that candle to 9500. Anyways! That should be a lesson to you guys of what happens if you play with fire, you get burned!

Anyways, I feel quite comfortable with this idea and I believe significant downside is ahead. Selling spot (non leverage) is probably a good idea anywhere from here to 9600.

If you found this useful please give me a like and a comment and if you feel like donating to help me rebuild my stack after this latest liquidation debacle I will leave my gemini address below.

All the best,

Red Boar


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Comment: update

A few counter points to consider. We had bear div between the first and second points on price (around 8200 and 8800 respectively), we already had a pullback there. It may be premature count the current price action around 9200 as bear div because we haven't established it as the high just yet. In a strong uptrend like this, the oscillators can just reset on small pullbacks or sideways price action. Also keep in mind that we have hidden bullish div on the recent lows on the same chart. As always be careful shorting this.
+1 Reply
@Scygon, I got totally rekt shorting last time I did not heed your warning. I currently do not have any coin to short so I won't be! But, per usual your advice is solid. Also, your point about the count being premature is totally valid. Thank you for your comments as always.
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Scygon texagg22
@texagg22, sorry to hear that. I hope you make it back.
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Always place stop loss 0,1-0,3% ahead of actual liquidation! You save a lot! Once i saw calculations(sorry dont have link) was even clearer to place stop loss. Why you think that insurance fund is so fat lol? Cause they liquidate you several points before and add difference in fund.
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texagg22 s3cr3t44
@s3cr3t44, wow, very true. Thank you for the comment
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