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Bearish Divergence
Sign of weakening uptrend between price and indicator.
Beginner-friendly explanation
A bearish divergence occurs when price rises but an indicator drops. It may warn of an upcoming fall. Example: Ethereum goes up but RSI drops — watch for reversal.
Intermediate-level insight
This divergence signals trend exhaustion, especially near resistance or overbought areas. Example: A higher high on price but lower high on RSI above 70 is a classic bearish divergence.
Advanced perspective
Bearish divergences are used for profit-taking or reversals. They’re more reliable when volume declines. Example: A day trader spots bearish UO divergence + falling volume to go short.
Technical & Chart Analysis
divergence, bearish, reversal, overbought, volume, rsi, profit-taking
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