A quick example of a bearish divergence trade…

A divergence where an indicator has failed to confirm a new price high and is starting to roll-over, implying a tired uptrend. Indicators where negative divergences are most effective include the 14-day RSI, MACD, on-balance-volume, relative ratio, as well as breadth studies. Apple (AAPL) has struggled the past two weeks, underperforming the broader market. The chart exhibits a bearish momentum divergence. By that we mean the …

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