Bearish divergence = Higher highs on price, lower highs on indicators - Weak signal in bull markets, but usually happen before a trend change (especially along with a volume spike)
Bullish divergence = Lower lows on price, higher lows on indicators - Strong signal in bull markets; usually followed by continuation of the bullish trend
Nothing works all the time, but when something is working, keep doing it! Can you short the bearish divergences in bull markets profitably? YES, but only VERY QUICKLY. Would I rather ride the train over and over and lose (small) once when the trend finally changes rather than fear that "this could be it" every time we get a pullback and getting left out on the next dip? YES.
Personally, I take a portion of my profits off the table on bearish divergence (on higher time frames) and occasionally short if the odds are good enough (on shorter time frames), but I'm currently long a few cryptos (most heavily Litecoin) and partially sitting in cash until we get bullish divergences on the 4hr or 6hr chart, where I plan to add. Being long as Litecoin holds 100 and Bitcoin continues to put in higher lows MAY be too obvious....but often times the "stupid" money is right (for a while, anyway). Just ask anyone who traded bullish in 2017. Don't get lost in the excitement and break your plan, but if the trade is there, take it!
评论:
nice little move. short-term charts sending some sell-signals. Up the stop, buy again a bit lower if it hits.
交易结束：到达目标:
Trailed out; happy with the trade. Buy back lower.