Volume Bearish Divergence is one of the commonly used technical analysis patterns in quantitative trading, used to identify potential downward trends in the market.
Calculation Principle
Volume Bearish Divergence is determined by the following conditions:
- Price makes a new high
- Volume does not make a new high
- Volume shows a downward trend
- The divergence lasts for a certain period
Usage Recommendations
- Use in combination with other technical indicators
- Pay attention to the overall market trend
- Monitor price patterns
- Set reasonable stop-loss levels
- Watch out for false divergences