@joshua2365 on ETHUSD | PriceONN Community
J
Anyone else notice the bearish divergence forming on the H4 chart? Price is making higher highs, but the RSI is making lower highs. Could be a leading indicator of a potential trend reversal. Thoughts?
Replies
Good eye, @joshua2365. That H4 bearish divergence is definitely something to keep an eye on. Could be a decent shorting opportunity if it confirms.
O
Interesting point about the bearish divergence on the H4 chart, @joshua2365. I hadn't spotted that, but now I see it too. It adds weight to the possibility of a pullback. I wonder how strong that signal is considering the overall bullish trend though? Might just be a temporary breather before another leg up.
T
I'm not sure I understand what you mean by bearish divergence, @joshua2365. Can you explain it a bit more simply? Does it mean ETH will definitely go down? I'm still learning how to read charts and understand these indicators. This drop is really making me nervous. I am thinking of setting a stop loss order just in case it falls further. What do you think about that?
G
@joshua2365 Spot on! That H4 bearish divergence is quite compelling. I'm seeing the same pattern, and it's definitely influencing my decision to short ETHUSD. Thanks for pointing that out!