What is Bearish BTCUSD Trading Divergence?
What's Divergence Bitcoin Definition? - Divergence is a cryptocurrency trading setup used by Bitcoin traders - bitcoin divergence trading involves looking at a bitcoin chart & a bitcoin indicator - for example MACD indicator.
To find this bitcoin divergence setup find 2 chart points which bitcoin trading price makes a new swing high or a new swing low but the MACD technical indicator does not do the same, this bitcoin signals a divergence between bitcoin trading price and 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 two lows that form a WShape on the crypto chart. Then look for the same M-shape or W-Shape on Bitcoin MACD indicator.
Example of a Cryptocurrency Divergence 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 trading price chart.
Then using bitcoin MACD technical technical indicator we check the highs made by MACD technical technical indicator, these are highs that are direct below Chart points marked A & B.
We then draw one line on the cryptocurrency chart and another line on the MACD bitcoin technical trading technical indicator.
Divergence Bitcoin Signals - What's Divergence Cryptocurrency Explanation? - What is Divergence Bitcoin Definition?
The bitcoin chart above shows example of hidden bearish bitcoin trading divergence.
What is Bitcoin Divergence?
In order to trade Cryptocurrency 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
Bitcoin Trading Divergence Terms Definition: What is Divergence Bitcoin Trading? - What is Bitcoin Divergence?
M shapes on Crypto charts dealing with Bitcoin price Highs
W Shapes on Crypto charts dealing with Bitcoin price lows
What's Bearish BTCUSD Trading Divergence? - What is Bullish Bitcoin Trading Divergence?
What's Bearish BTCUSD Trading Divergence? - What is Bullish Bitcoin Trading Divergence?
What's Divergence Bitcoin Trading? - What is Bitcoin Divergence? - What is Bearish Bitcoin Divergence? - What is Divergence Cryptocurrency Explanation? - What is Divergence Bitcoin Definition?
