Here's an example of an upswing alert turning sour. UBER. Got the RSI buy signal. MACD (purple) crossed the signal line (MACD average - yellow). It was below the -4ATR Keltner band. This told me to swing buy with stop at $63.80. Well right now, the MACD has come back and is threatening to cross back over. 4hr (right pane) MACD has turned back down and is using the signal line as resistance. This tells me to be on high alert for a potential new low. Downtrend is rising along with strength of trend. We're in stick save territory here.
If this turns back down, it will be one of those cases where RSI signaled a buy but couldn't get followthrough. This can happen a half dozen times in a longer downtrend, which is why MACD is so important. You have to get the MACD cross and it has to hold. The second it flips back under, you have to expect renewed downtrend.
The red 610 daily EMA below might be a magnet here.
“Give it hell Heinekandle, I’m enjoying it.”
- Farmer @ Johnsongrass, TX
“No secure borders, no alpha military, no energy independence, no leadership and most of all no mean tweets - this is the worst trade I’ve ever witnessed in my lifetime. ***Put that quote in your quote/signature section HeinendKandle*** LOL!”
- also Farmer @ Johnsongrass, TX (obviously in a worse mood)