BCHUSD: 1 hour bullish divergence but on a decending triangle?!
Updated
One of the more interesting charts up lately.
So we have 2 conflicting signals:
Descending triangle
1 hour bull div
Naturally trend line > divergence of price with momentum oscillators like the RSI.
You can either enter the trade and hope it breaks up that triangle with a VERY tight stoploss.
OR
You can enter after it breaks above the trendline/descending-triangle.
Option #2 is the safer one because your theory is then validated, but has a larger stoploss because now you are much further from that support area.
Option #1 is the riskier path, you take the trade, AGAINST a descending triangle, your stoploss is shorter, and maybe that decending triangle is just wave 4 if you do an elliot wave analysis.
So we have 2 conflicting signals:
Descending triangle
1 hour bull div
Naturally trend line > divergence of price with momentum oscillators like the RSI.
You can either enter the trade and hope it breaks up that triangle with a VERY tight stoploss.
OR
You can enter after it breaks above the trendline/descending-triangle.
Option #2 is the safer one because your theory is then validated, but has a larger stoploss because now you are much further from that support area.
Option #1 is the riskier path, you take the trade, AGAINST a descending triangle, your stoploss is shorter, and maybe that decending triangle is just wave 4 if you do an elliot wave analysis.
Note
Testing trendline.
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