Types of Bearish Divergence Bitcoin Trading
Types of Divergence Bitcoin Definition - Divergence is a cryptocurrency trading setup used by Bitcoin traders - divergence bitcoin trading involves looking at a bitcoin chart & a bitcoin indicator - for example MACD indicator.
To find this divergence bitcoin trading 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 divergence cryptocurrency trading set up we look for two chart points, two highs that 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 Divergence Bitcoin 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.
Divergence Bitcoin Signals - Types of Divergence Cryptocurrency Meaning - Types of Divergence Bitcoin Definition
The bitcoin chart above shows example of hidden bearish divergence bitcoin trading setup.
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In order to trade divergence cryptocurrency 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
Divergence Bitcoin Trading Terms Definition: Different Types of Divergence Bitcoin Trading - Types of Divergence Bitcoin
M shapes on BTCUSD charts dealing with Bitcoin price Highs
W Shapes on BTCUSD charts dealing with Bitcoin price lows
Types of Bearish Divergence BTCUSD Trading - Types of Bullish Divergence Bitcoin Trading
Types of Bearish Divergence BTCUSD Trading - Types of Bullish Divergence BTCUSD Trading
Types of Divergence Cryptocurrency - Types of Bearish Divergence Bitcoin Trading - Types of Bullish Divergence Bitcoin Trading - Types of Divergence Cryptocurrency Meaning - Types of Divergence Bitcoin Definition
