Divergence MACD Classic Bullish and Bearish Setups
MACD Classic divergence is used as a possible sign for a bitcoin trend reversal. Classic divergence is used when looking for an zone where bitcoin price could reverse and begin going in opposite direction. For this reason classic divergence is used as a low risk entry technique & also as an accurate way of exit out of a trade.
1. It is a low risk technique to sell near the btcusd market tops or buy near the btcusd market bottoms, this makes the risk on your trades are very small relative to the potential reward.
2. It is used to predict the optimum point at which to exit a Bitcoin trade.
There are two types:
- Bitcoin Classic Bullish Divergence
- Bitcoin Classic Bearish Divergence
BTCUSD Classic Bullish Divergence
Classic bullish divergence occurs when bitcoin trading price is making lower lows (LL), but the divergence macd indicator is making higher lows (HL).
Divergence MACD Classic Bullish
Classic bullish divergence warns of a possible change in bitcoin trend from down to up. This is because even though the bitcoin price went lower the volume of sellers who pushed the bitcoin price lower was less as illustrated by the MACD indicator. This is an technical indicator of the underlying weakness of the downward trend.
Classic bearish Bitcoin Trading Divergence Setup
Classic bearish divergence occurs when bitcoin trading price is making a higher high (HH), but the divergence macd indicator is lower high (LH).
Divergence MACD Classic Bearish
Classic bearish divergence warns of a possible change in the bitcoin trend from up to down. This is because even though the bitcoin price went higher the volume of buyers that pushed the bitcoin price higher was less as illustrated by the Divergence MACD indicator. This is an technical indicator of the underlying weakness of the upward trend.
Divergence MACD Hidden Bullish and Bearish Setups
MACD Hidden divergence is used as a possible sign for a bitcoin trend continuation.
This divergence trade setup occurs when bitcoin price retraces to retest a previous high or low.
1. Bitcoin Hidden Bullish Divergence
2. Bitcoin Hidden Bearish Divergence
BTCUSD Hidden Bullish Divergence
Forms when bitcoin trading price is making a higher low (HL), but the MACD oscillator is showing a lower low (LL).
Hidden bullish divergence occurs when there is a retracement in an upward cryptocurrency trend.
Divergence MACD bullish
This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an upward cryptocurrency trend.
Bitcoin Hidden Bearish Divergence
Forms when bitcoin trading price is making a lower high (LH), but the MACD oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in an upwards cryptocurrency trend.
divergence MACD bearish
This divergence trade set-up confirms that a retracement move is complete. This diverging indicates underlying strength of a downward cryptocurrency trend.
