How can divergence chart help in predicting cryptocurrency price movements?

1 answers

• Apr 30, 2022 · 3 years ago
  Definitely! Divergence charts can provide valuable insights into cryptocurrency price movements. By comparing the price of a cryptocurrency with an indicator, such as the RSI or MACD, traders can identify potential divergences that may signal a change in trend. For example, if the price of a cryptocurrency is making higher highs while the RSI is making lower highs, it could indicate a bearish divergence and suggest a potential price decline. However, it's important to note that divergence charts should not be used in isolation and should be combined with other analysis techniques and indicators for more accurate predictions.
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