RSI Divergence Definition
RSI Bitcoin Trading Divergence is one of the bitcoin trading strategy used by online cryptocurrency traders to analyze bitcoin chart bitcoin trading price movement. RSI Bitcoin Trading Divergence involves looking at a cryptocurrency chart and one more cryptocurrency indicator - RSI indicator. For our this cryptocurrency trading divergence tutorials we shall use the RSI cryptocurrency indicator - RSI Bitcoin Trading Divergence.
To spot this RSI Bitcoin Trading Divergence trading setup find two bitcoin chart points at which bitcoin trading price makes a new swing high or a new swing low but the RSI cryptocurrency technical indicator does not do the same, thus indicating that there's a divergence between the bitcoin trading price & momentum.
RSI Bitcoin Divergence Example:
In the cryptocurrency chart below we spot two btcusd chart points, point A and point B ( swing highs )
Then using RSI cryptocurrency indicator we check the highs made by RSI bitcoin technical trading technical indicator, these are highs that are direct below Chart points marked A & B.
We then draw one line on the cryptocurrency chart & another line on the RSI bitcoin technical technical indicator.
RSI Bitcoin Divergence Explanation - Bitcoin Bullish Divergence RSI - Cryptocurrency Bearish Divergence RSI - RSI Divergence Bitcoin Trading
How to trade RSI Bitcoin Trading Divergence
In order to trade RSI Bitcoin Divergence setup we look for the following setups:
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 examples of these Bitcoin Trading Divergence trading terms
RSI Divergence Definition - Bitcoin RSI Divergence Explained
RSI Bitcoin Trading Divergence Definition - RSI Divergence Bitcoin Trading Described - RSI Bitcoin Divergence Strategy Guide - RSI Divergence Bitcoin Trading Tutorial
There are two different types of bitcoin trading RSI divergence setups:
- RSI Classic Divergence
- RSI Hidden Divergence
