D1 - Bullish divergence, price is moving higher towards the downtrend line.
If we didn’t get a valid breakout here we may then expect the price to respect this trend line and move lower again.
H4 - We have a critical zone. We may now expect pullbacks to happen from the current zone and then possible continuation lower.
We have hidden bearish divergence.
Invalidation: If the price breaks and holds above the downtrend line then this setup will be invalidated.
If we didn’t get a valid breakout here we may then expect the price to respect this trend line and move lower again.
H4 - We have a critical zone. We may now expect pullbacks to happen from the current zone and then possible continuation lower.
We have hidden bearish divergence.
Invalidation: If the price breaks and holds above the downtrend line then this setup will be invalidated.