BTCUSD Trading Divergence Definition

Divergence trading concept is a concept where a trader will for a difference between the bitcoin price movement with the movement of a technical technical indicator. For our example we shall use the RSI technical indicator to explain divergence trading.

RSI indicator is one of the oftenly used divergence technical indicator. This btcusd indicator is an oscillator similar to the RSI & it can be used to trade divergence setups just the same way as the RSI indicator.

RSI Bitcoin Trading Analysis and RSI Trading Signals

RSI Divergence Cryptocurrency Technical Indicator

RSI Divergence Cryptocurrency Technical Indicator

Classic RSI Bullish BTCUSD Trading Divergence Setup

RSI classic bullish divergence occurs when bitcoin price is forming lower lows ( LL ), but the RSI technical indicator is forming higher lows ( HL ).

Bitcoin Trading Classic Bullish Divergence - RSI Bitcoin Divergence Definition

RSI classic bullish divergence warns of a possible change in the bitcoin trend from down to up. This is because even though the bitcoin price went lower the volume of sellers who pushed the bitcoin price lower was less as shown by the RSI technical technical indicator. This is an technical indicator of the underlying weakness of the downward trend.

Hidden RSI Bullish Bitcoin Trading Divergence Setup

Forms when bitcoin price is forming a higher low ( HL ), but the RSI technical indicator is showing a lower low ( LL ).

RSI hidden bullish divergence occurs when there is a retracement in an upwards cryptocurrency trend.

Crypto Hidden Bullish Divergence - RSI Bitcoin Divergence Definition

This set-up confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an upward cryptocurrency trend.

RSI Divergence Crypto Trading Indicator

Hidden RSI Bearish BTCUSD Trading Divergence Setup

Forms when bitcoin price is forming a lower high ( LH ), but the oscillator technical indicator is showing a higher high ( HH ).

Hidden bearish divergence forms when there is a retracement in a downward cryptocurrency trend.

Crypto Trading Hidden Bearish Divergence - RSI Bitcoin Divergence Definition

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards cryptocurrency trend.

RSI Classic bearish Bitcoin Trading Divergence Setup

RSI classic bearish divergence occurs when bitcoin price is showing a higher high ( HH ), but the RSI technical indicator is forming a lower high ( LH ).

Crypto Classic Bearish Divergence - RSI Bitcoin Divergence Definition

RSI 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 price higher was less as shown by the RSI technical technical indicator. This is an technical indicator of the underlying weakness of the upward trend.