GOOGL - short-term reversal trade that’s textbook example
I was looking at $Alphabet-A(GOOGL.US$ for short-term reversal trade. With wash and rinse and retracement entry, I was able to sell at around 146.
Technically here’s why:
1. Price is near to historical high
2. Price made a new high, but indicators (MACD and MACD-H) show bearish divergence.
3. Scroll down to learn more about bearish divergence concepts.
4. Hit the follow me button for more updates.
5. Short-term support around 133. Longer term trend is still upwards moving.
About bearish divergence:
Bearish divergence occurs when the price of an asset makes a higher high, but the corresponding indicator (like the MACD) makes a lower high.
It suggests that the upward momentum is weakening, and a potential reversal or downtrend may be on the horizon.
Traders use bearish divergence to anticipate possible selling opportunities or to manage their existing long positions.
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