Long
BCHUSD: 1 hour bullish divergence but on a decending triangle?!
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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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.