A divergence on the MACD indicator suggests a weakening in the price momentum of the previous bullish trend.
As there could be a period of non-directional consolidation, wait for price to close outside the bracketing entry levels
Price may want to test the previous pivot high before either breaking out above it or travelling to the lower boundary of the wedge to continue with the higher timeframe downtrend.
A divergence on the MACD indicator may also indicate that price is losing it's upward momentum
Hello traders!
A bearish divergence just showed up and it seems promising! In fact, if you look at the MACD you may see clearly that the bullish momentum is getting weaker and the RSI is almost overbought! These two facts make me think that a bearish reversal will take place (if not now, in a while).
The target is our dotted line and remember to put a stop loss...
