Bitcoin Trading with Divergence on MT4 MT5 PDF Free Download
Divergence Bitcoin Trading Setup is one of the trade setups used by Bitcoin traders. It involves looking at a cryptocurrency chart and one more cryptocurrency indicator. For our example we shall use the MACDbitcoin indicator.
To spot this cryptocurrency trading divergence setup find 2 chart points at which bitcoin price makes a new swing high or a new swing low but the MACD cryptocurrency indicator doesn't, indicating a divergence between bitcoin price & momentum.
To look for divergence cryptocurrency setup we look for two chart points, 2 highs that form an M-shape on the cryptocurrency chart or two lows that form a WShape on the crypto chart. Then look for the same M-shape or W-Shape on the cryptocurrency indicator you use to trade.
Example of a Bitcoin Trading Divergence Trade Setup:
In the cryptocurrency chart below we spot 2 chart points, point A & point B (swing highs). These two chart points form an M-shape on the bitcoin price chart.
Then using MACD cryptocurrency technical indicator we check the highs made by the MACD technical indicator, these are highs that are directly below Chart points A & B.
We then draw one line on the cryptocurrency chart and another line on the MACD indicator.
Drawing Bitcoin Divergence Lines
The cryptocurrency chart above shows an example of one of the 4 types of cryptocurrency trading divergence setups, the one cryptocurrency trading divergence setup above is known as hidden bearish cryptocurrency trading divergence setup, one of the best type to trade. Types of bitcoin trading divergences are covered in the next learn bitcoin trading guide course.
How to spot cryptocurrency trading divergence setups
In order to spot Bitcoin Trading divergence trading signal we look for the following:
- HH=Higher High- 2 highs but the last one is higher
- LH= Lower High- 2 highs but the last one is lower
- HL=Higher Low- 2 lows but the last one is higher
- LL= Lower Low- 2 lows but the last one is lower
First let us look at the illustrations of these cryptocurrency trading divergence trading terms:
M-shapes dealing with BTCUSD price Highs
W Shapes dealing with Bitcoin price lows
Example of M Shapes on Crypto Charts
Examples of W Shapes on Cryptocurrency Charts
Now that you have learned the cryptocurrency trading divergence trading terms which are used to explain divergence bitcoin setup. Let us look at the 2 types of divergences and how to trade these cryptocurrency chart setups.
There two types are:
- Classic Divergence Bitcoin Trading Setups
- Hidden Divergence Bitcoin Trading Setups
These two setups are explained on the following guides below
Classic Divergence Bitcoin Trading Setup
Hidden Divergence Bitcoin Trading Setup
Bitcoin Trading with Divergence on MT4 MT5 Download - Bitcoin Trading with Divergence on MT4 MT5 Bitcoin Trading Platform PDF Free Download - MT4 Bitcoin Platform MT5 Divergence Bitcoin Trading Tutorial.
