Bullish BTCUSD Trade Divergence Trading Setup
In bullish divergence there are 2 bullish divergence trading setups mainly traded in the btcusd market - these bitcoin trading setups are; Crypto Classic Bullish Divergence and BTCUSD Hidden Bullish Divergence.
Bitcoin Classic Bullish Divergence Setup
Classic bullish divergence forms when btcusd crypto price is making lower lows ( LL ), but oscillator trading is forming/making higher lows (HL). The example illustrated below illustrates picture of this bitcoin trade setup.
Bitcoin Crypto Currency Classic Bullish Divergence - Bullish Divergence Bitcoin Trading
This examples uses MACD as a BTC/USD Crypto divergence trading indicator.
From the above bullish divergence illustration the bitcoin price made a lower low(LL) but the indicator made a higher low(HL), this highlights there a divergence between the bitcoin trading price & indicator. The signal warns of a possible btcusd trend reversal.
Classic bullish diverging signal warns of a possible change in bitcoin crypto trend from downward to upward. This is because even though the bitcoin price headed lower the volume of the sellers who moved the bitcoin trading price lower was less as highlighted by MACD. This shows under-lying weakness of the down-ward BTC/USD CryptoCurrency trend.
BTCUSD Hidden Bullish Divergence Trade Setup
This bullish divergence setup happens when bitcoin price is making a higher low ( HL ), but oscillator (technical indicator) is showing a lower low (LL). To remember these setups easily think of these setups as W shapes on Charts. It occurs when there's a retracement in an upward BTCUSD Crypto trend.
The bullish divergence example shown below illustrates screen shot of this bitcoin trading setup, from the image the bitcoin trading price made a higher low (HL) but the indicator made a lower low (LL), this highlights that there was a diverging trade signal between the bitcoin price & indicator. This trading signal shows that soon the bitcoin trading market up bitcoin trend is going to resume. In other words it highlights this was just a retracement in an upwards btcusd crypto trend.
Crypto Hidden Bullish Divergence Pattern- Bullish Divergence Bitcoin Trading
This bullish divergence confirms that a retracement move is exhausted & illustrates underlying momentum of an upward trend.
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