A bearish divergence occurs when an asset's price makes higher highs while a momentum indicator (like RSI, MACD, or Stochastic Oscillator) makes lower highs. This divergence suggests weakening buying pressure and potential for a price reversal to the downside. Traders use this signal to consider selling or shorting the asset, but should confirm with additional analysis to avoid false signals.
Chart PatternsHarmonic PatternsTrend Analysis

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