Momentum Bearish Divergence

With the same rules applying to our buying signal using divergences in momentum compared to price, we will now follow this format to find such a point to sell:

  1. Find the highest prince on the chart. Once this price high has been found, mark it with the letter A.
  2. Now move to the momentum indicator for about the same date and mark it accordingly with the letter B. This point can vary by a few days left or right of point A.
  3. From this point move to the left on the momentum to find the highest momentum and mark it with the letter C.
  4. Now move up to the price that corresponds with C.
  5. Mark this point with the letter D. You should now have the configuration as seen in the graph below.
  6. Now we can chose the lowest momentum move between letter B and C and mark it with the letter E. This point will become our selling point.


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