Moving Average Convergence and Divergence MACD Classic Bullish and Bearish Divergence
Moving Average Convergence and Divergence MACD Classic divergence is used as a possible sign for a bitcoin trend reversal. Classic divergence is used when looking for an area where bitcoin price could reverse & begin going in the opposite direction. For this reason classic divergence is used as a low risk entry technique and also as an accurate way of exit out of a trade.
1. It is a low risk method to sell near the btcusd trading market tops or buy near the btcusd market bottom, this makes the risk on your trades are very small relative to the potential reward.
2. It is used to predict the optimum point at which to exit a Bitcoin trade.
There are two types:
- BTCUSD Trading Classic Bullish Divergence
- Bitcoin Trading Classic Bearish Divergence
Bitcoin Classic Bullish Divergence
Classic bullish divergence occurs when bitcoin price is forming lower lows ( LL ), but the oscillator technical indicator is forming higher lows ( HL ).
Moving Average Convergence and Divergence MACD Bitcoin Classic Bullish Divergence
Classic bullish divergence warns of a possible change in bitcoin trend from down to up. This is because even though the bitcoin price went lower the volume of sellers who pushed the bitcoin trading price lower was less as illustrated by the Moving Average Convergence and Divergence MACD indicator. This is an technical indicator of the underlying weakness of the downward trend.
Classic bearish BTCUSD Trading Divergence Setup
Classic bearish divergence occurs when bitcoin price is showing a higher high ( HH ), but the oscillator technical indicator is showing a lower high ( LH ).
Moving Average Convergence and Divergence MACD Bitcoin Trading Classic Bearish Divergence
Classic bearish divergence warns of a possible change in bitcoin trend from up to down. This is because even though the bitcoin trading price went higher the volume of buyers who pushed the bitcoin trading price higher was less as illustrated by the Moving Average Convergence and Divergence MACD indicator. This is an technical indicator of the underlying weakness of the upward trend.
