Types of Bitcoin Divergence

Types of Bitcoin Divergence Definition - Divergence is a trading setup used by Bitcoin traders - BTCUSD Trade Divergence Setups involves looking at a btcusd chart & a bitcoin indicator - for example MACD indicator.

To find this Bitcoin Trade Divergence Setups setup find 2 chart points which bitcoin price makes a new swing high or new swing low but the MACD does not do the same, this bitcoin signals a divergence setup between bitcoin price & MACD momentum.

For a Bitcoin Trade Divergence Setups setup we look for 2 chart points, 2 highs which form an M shape on the chart or 2 lows that form a W-Shape on the chart. Then search for the same M shape or W-shape in the Bitcoin MACD indicator.

Example Illustration of a Divergence Trading Setup:

In the bitcoin crypto chart below we spot two chart points, point A and point B (swing highs). These 2 bitcoin cryptocurrency points form an M shape on the bitcoin price chart.

Then using bitcoin MACD technical indicator we check highs made and formed by the MACD bitcoin indicator, these are highs that are directly below Chart points marked A and B.

We then plot one line on the chart & another line on MACD indicator.

Types of Crypto Divergence - Types of Bullish Divergence Trading Setups

Bitcoin Trade Divergence Setups Signals - Types of Bitcoin Divergence Meaning - Types of Bitcoin Divergence Meaning

The bitcoin chart above displays example of hidden bearish Divergence setup.

hat is Bitcoin Trade Divergence Setups Types of Bitcoin Divergence

In order to trade Divergence Setups signal we check for the following:

HH : Higher High : 2 highs but last is higher
LH : Lower High - two highs but last is lower
HL : Higher Low - 2 lows but last is higher
LL : Lower Low - two lows but last is lower

Bitcoin Trade Divergence Setups Terms Definition: Different Types of Bitcoin Divergence Setups - Types of Bitcoin Divergence

M shapes on Bitcoin charts dealing with BTCUSD price Highs

Types of Bearish Bitcoin Divergence Setups - Types of Bullish BTC/USD Divergence Trading Setups

W Shapes on Bitcoin charts dealing with BTCUSD price lows

Types of Bearish Bitcoin Divergence Setups - Types of Bullish Bitcoin Divergence Setups - Types of BTCUSD Divergence Setups

Types of Bearish BTC/USD Divergence Setups - Types of Bullish Bitcoin Divergence Trading Setups

Types of Bitcoin Divergence Setups - Bitcoin Trade Divergence Analysis Strategies Guides PDF

Types of Bearish BTC/USD Divergence Setups - Types of Bullish BTC/USD Crypto Divergence Setups

Types of Bearish Bitcoin Trade Divergence Setups BTCUSD - Types of Bullish BTC/USD Divergence Trading Setups

Types of Divergence - Types of Bearish Bitcoin Divergence Setups - Types of Bullish Bitcoin Divergence Setups - Types of Bitcoin Divergence Meaning - Types of Bitcoin Divergence Meaning

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