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RSI Bitcoin Indicator Divergence Bitcoin Trade Setups

Bitcoin Divergence is one of the trade transaction setups used by Bitcoin traders. It involves looking at a chart and one more indicator. For our example we shall use the RSI technical indicator.

Spot this divergence by finding two chart points. Bitcoin price makes a new high or low, but RSI does not. This signals a momentum gap.

RSI Bitcoin Divergence Example:

In the chart below we identify 2 chart points, point A & point B (swing highs)

Then, using RSI, we look at and study the high points made by the bitcoin RSI technical indicator, which are right below the bitcoin chart points labeled A and B.

We then draw one line on the trading chart and another line on the RSI.

RSI Divergence Bitcoin Setup - How to Spot RSI Divergence BTCUSD Crypto Strategies - RSI BTCUSD Divergence Trading

RSI Divergence Bitcoin Setup - Bitcoin Trade Divergence using RSI Crypto Indicator

How to spot bitcoin divergence

To identify this divergence trade setup, we need to look for the following:

HH = Higher High : two highs but last is higher

LH = Lower High : 2 highs but last is lower

HL = Higher Low : two lows but last is higher

LL = Lower Low - 2 lows but the last is lower

First let us look at the illustrations of these bitcoin terms

Divergence Bitcoin Trading Terms Definition - RSI Crypto Divergence Trading

Divergence Bitcoin Trading Terms Definition

Bitcoin Trade Divergence Terms Definition Examples - How Do You Analyze/Interpret Divergence Trade Setup?

Bitcoin Divergence Terms Definition Examples

There are 2 different types of divergence setups:

  1. Classic BTCUSD Trading Divergence
  2. Hidden Bitcoin Trading Divergence

More Topics and Tutorials:

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