What are the most common divergence patterns in cryptocurrency trading?

1 answers

• May 29, 2022 · 3 years ago
  When it comes to divergence patterns in cryptocurrency trading, there are a few common ones that traders should be aware of. One of the most popular divergence patterns is the bullish divergence, which occurs when the price of a cryptocurrency makes a lower low, but the corresponding indicator makes a higher low. This can be a sign of a potential trend reversal to the upside. On the other hand, bearish divergence happens when the price makes a higher high, but the indicator makes a lower high. This could indicate a possible downward trend. Traders often use indicators like the RSI, MACD, and Stochastic Oscillator to identify these patterns. These indicators can provide valuable insights and help traders make more informed trading decisions.
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