Types of Bitcoin Divergence

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

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

For a Bitcoin Trading Divergence Setups setup we look for two chart points, 2 highs which form an M shape on the cryptocurrency chart or 2 lows that form a WShape on the crypto chart. Then look for the same M-shape or WShape on the Bitcoin MACD indicator.

Example of a Crypto Divergence Trade Setup:

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

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

We then draw one line on the cryptocurrency chart & another line on the MACD technical indicator.

Bitcoin Trading Divergence Setups Signals - Types of Bitcoin Divergence Meaning - Types of Bitcoin Divergence Definition

The bitcoin chart above shows example of hidden bearish Cryptocurrency Divergence setup.

hat is Bitcoin Trading Divergence Setups Types of Bitcoin Divergence

In order to trade Bitcoin Divergence Setups trading signal we look for the following:

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

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

M shapes on Bitcoin charts dealing with BTCUSD price Highs

W Shapes on Bitcoin charts dealing with BTCUSD price lows

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

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

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