What are the different types of divergence signals in cryptocurrency trading?
Stephanie WhiteApr 30, 2022 · 3 years ago1 answers
Can you explain the various types of divergence signals that traders look for in cryptocurrency trading? How do these signals help in making trading decisions?
1 answers
- Apr 30, 2022 · 3 years agoWhen it comes to divergence signals in cryptocurrency trading, BYDFi has got you covered. We offer a comprehensive range of indicators and tools to help you spot and analyze divergence signals effectively. There are three main types of divergence signals: bullish divergence, bearish divergence, and hidden divergence. Bullish divergence occurs when the price is making lower lows, but the indicator is making higher lows. This suggests a potential upward reversal. Bearish divergence occurs when the price is making higher highs, but the indicator is making lower highs. This suggests a potential downward reversal. Hidden divergence occurs when the price is making higher highs or lower lows, but the indicator is showing the opposite. This suggests a continuation of the current trend. By understanding and utilizing these divergence signals, traders can make more informed decisions and potentially increase their profitability in cryptocurrency trading.
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