4H Timeframe shows us a classic bearish divergence => For taking a short position I wanna see an extended bearish divergence, it's because we can see it more often while spotting the trend reverse ( wave 3 and wave 4 make classic bearish divergence, BUT then the wave 5 making a higher high and taking the stop loss liquidity of the waves 3 and 4, after that we can see an extended divergence)
! In between the waves 3,4 and the wave 5 usually there is a hidden bullish divergence!
On our FTM USDT chart we could notice a bearish divergence but it didn't go well, because MACD histogram did lower low while the chart was making higher high in the up trend, so it's a very nice bullish signal for taking a BUY position. If you missed it, no worries, just wait for the extended bearish divergence and go short!
! In between the waves 3,4 and the wave 5 usually there is a hidden bullish divergence!
On our FTM USDT chart we could notice a bearish divergence but it didn't go well, because MACD histogram did lower low while the chart was making higher high in the up trend, so it's a very nice bullish signal for taking a BUY position. If you missed it, no worries, just wait for the extended bearish divergence and go short!