Trade Bitcoin Trading

Divergence Software

Divergence trading is one of bitcoin signals that can be generated/derived when using stochastic technical indicator.

Divergence is a signal that a rally or retracement is losing steam and is likely to reverse. It means that last buyers or last sellers are pushing bitcoin price in one way while most of the other traders have stopped trading in that way and are cautious of a btcusd price correction or pullback.

There are Four types of divergence-setups.

Example 1: Bitcoin Classic Bullish Divergence

A Bullish Divergence in the stochastic indicator & the bitcoin crypto price is followed by a rise in btcusd price.

Trading Bullish Divergence BTCUSD Software - Divergence Bitcoin Guide

Divergence Software - Bullish Divergence BTCUSD ==22==CryptoCryptoCurrency Using BTCUSD Software

When the bitcoin price is making new lows the Stochastic indicator is not moving past its previous lows it is an indication that the down bitcoin trend is about to turn and reverse and a bullish rally is likely to occur.

In the crypto above example the price set a new low but it was not coupled and accompanied with a new low in the measure of the Stochastic, when btcusd cryptocurrency price formed a new low then the indicator should have followed suit, but the stochastic did not thence the divergence.

This setup is even stronger because there is combination of a divergence & then followed by a rise above the 20% level. This combines the Overbought & Over-sold levels.

Example 2: BTCUSD Classic Bearish Divergence

A Bearish Divergence in stochastic indicator ==22==and the btcusd price is followed by a drop in btcusd price.

Bitcoin Classic Bearish Divergence - Trading Bullish Divergence BTCUSD Platform

Divergence Software - Bearish Divergence BTCUSD Crypto Using Bitcoin Software

When bitcoin price is making new highs but the Stochastic is not moving beyond its previous high it is an indication the up bitcoin trend will reverse and that a bearish divergence will follow.

This trade set-up is interpreted as being even stronger because there's a combination of a divergence setup with a dip below overbought 80 level.

Example 3: Bitcoin Hidden Bullish Divergence

This setup signifies a retracement in an upwards trend. This is the best type of divergence setup to trade, because you're not trading a bitcoin price reversal, but ==22==you--areyou're trading within the direction of the Bitcoin trend.

Crypto Bullish Divergence Strategy - Bitcoin Divergence Trading & Trade Divergence Setups in Trading

Divergence Trade Platform - Bullish Divergence Bitcoin Using Bitcoin Software

Even though, the stochastic oscillator made a lower low the bitcoin price low was higher than the previous and prior low (higher low: HL). This means though bears made a reasonable attempt to push bitcoin price down as indicated by the stochastic, this wasn't reflected on the bitcoin crypto price, & the bitcoin price did not make a new low. This is the best place to buy bitcoin crypto, since it is even in an upwards bitcoin trend there is no need for you to chill and wait for a confirmation signal, because you are buying in an upwards Bitcoin trend.

Example 4: BTCUSD Hidden Bearish Divergence

This setup signifies a retracement in a downwards trend.

Trading Bullish Divergence Bitcoin Software - Bitcoin Bullish Divergence Strategy - Trade Bitcoin Divergence Signals

Divergence Software - Bearish Divergence BTCUSD Using BTCUSD ==22==CryptoCryptoCurrency Software Platform

This is the best type of divergence to trade, because you're not trading a bitcoin price reversal, but you're trading within the direction of the trend. This is the best place to sell btcusd crypto, since it is even in a down bitcoin trend there is no need for you to chill and wait for a confirmation signal, because you are selling in a downward Bitcoin trend.

More Topics & Courses:

Forex Seminar Gala

Forex Seminar

Bitcoin Broker