MACD Bitcoin Classic Bullish and Bearish Divergence
MACD Bitcoin Classic divergence trade setup is used as a possible sign for a bitcoin trend reversal. MACD classic divergence is used when looking for an area where bitcoin trading price could reverse & start going in the opposite market trend bitcoin trend direction. For this reason MACD classic divergence is used as a low risk entry method & also as an accurate way of exit out of a bitcoin trade.
1. It's a low risk technique to sell near the btcusd trading market tops or buy near the btcusd trading market bottom, this makes the risks on your trades are small compared to potential reward.
2. It's used to predict the optimum point/level at which to exit a Bitcoin trade.
There are 2 different types of Bitcoin Classic Divergence:
- BTCUSD Trade Classic Bullish Divergence Setup
- BTCUSD Crypto Classic Bearish Divergence Setup
Bitcoin Classic Bullish Divergence in Bitcoin Trading
Classic bullish divergence in bitcoin trading occurs when bitcoin price is making lower lows ( LL ), but the oscillator indicator is making/forming higher lows ( HL ).
MACD Bitcoin Classic Bullish Divergence in Bitcoin Trading - MACD Divergence Method
Classic bullish divergence in trading warns of a possible change in the bitcoin trend from down to up. This is because though the bitcoin price headed lower the volume of the sellers who moved the bitcoin trading price lower was less like as illustrated by the MACD cryptocurrency indicator. This indicates underlying weakness of the down-wards market trend.
Classic bearish divergence in Bitcoin Trading
Classic bearish divergence in bitcoin trading occurs when bitcoin price is showing a higher high ( HH ), but the oscillator indicator is showing a lower high ( LH ).
MACD Bitcoin Trade Classic Bearish Divergence in Bitcoin Trading - MACD Divergence Strategy
Classic bearish divergence signals a possible reversal in btcusd market btcusd trend from up to down. This is because though the bitcoin trading price headed higher the volume of the buyers who moved the bitcoin trading price higher was less just as is illustrated by the MACD cryptocurrency indicator. This reflects under-lying weakness of the upwards trend.
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