Bank of America

Bank of America: Example How to Trade Against The Trend

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It is a very good example, which explains how to trade against the main trend.

The price reached the upper line of the price channel. We got a trend reversal signal based on a bearish divergence. RSI is bearish, MACD supports a possible downward movement.

If the price breaks the local uptrend line, it will confirm the downward movement. The market will be able to correct the previous strong upward movement and reach the zone between SMA100 and the weekly uptrend line. This zone will be good for buying based on confirmed reversal signals.

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