BTC: 4H Bullish Divergence CONFIRMED - How To Trade Divergences!
Updated
Hello everyone, although price has declined over the past 24 hours - we have suggested a possible bullish RSI divergence from our previous analysis and it's now in play.
Divergences are one of my favorite trading concepts because they offer very reliable high-quality trading signals when combined with other trading tools and concepts. RSI bullish divergences will form when the price forms a lower low (LL), and the RSI forms a higher low (HL). This is a warning sign that the trend direction might change from a downtrend to an uptrend. The RSI divergence is a widely used technical pattern in crypto and almost always plays out on higher time frames. Using these strategies, you can achieve various RSI indicator buy and sell signals.
Understanding when your indicator is high or low is important when it comes to interpreting divergences and I generally encourage traders to look beyond the squiggly lines of their indicators to explore what it really does.
A divergence does not always lead to a strong reversal and often price just enters a sideways consolidation after a divergence. Keep in mind that a divergence just signals a loss of momentum, but does not necessarily signal a complete trend shift.
Trade Safe.
X Force
Divergences are one of my favorite trading concepts because they offer very reliable high-quality trading signals when combined with other trading tools and concepts. RSI bullish divergences will form when the price forms a lower low (LL), and the RSI forms a higher low (HL). This is a warning sign that the trend direction might change from a downtrend to an uptrend. The RSI divergence is a widely used technical pattern in crypto and almost always plays out on higher time frames. Using these strategies, you can achieve various RSI indicator buy and sell signals.
Understanding when your indicator is high or low is important when it comes to interpreting divergences and I generally encourage traders to look beyond the squiggly lines of their indicators to explore what it really does.
A divergence does not always lead to a strong reversal and often price just enters a sideways consolidation after a divergence. Keep in mind that a divergence just signals a loss of momentum, but does not necessarily signal a complete trend shift.
Trade Safe.
X Force
Note
Note
Bitcoin is doing fantastic and is now approaching some interesting resistance, but a break above here we can expect $10,800. Trade Safe.
Note
We got an incredible save for Bitcoin as the stock market is also seeing green candles.
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