Bullish Divergence on the Daily
Updated
Bullish divergence is a great way to spot an exhaustion of selling pressure in a bear trend and a short term reversal. As you can see here, it's been spot on through the downtrend, and each time has been followed by a move of around 40%.
One thing to consider is that the entries aren't always perfect. Looking at June 22nd and the bullish div we had there, we still went lower and re-tapped the oversold line on the RSI to create a double divergence before reversing and going up approx 43%. But this excellent strike rate combined with a high R/R is enough reason to enter a BTC long.
Still keeping alt/USD shorts open as a hedge because volume hasn't kicked back in yet.
Opening a BTC long here with stop below the swing low (5900 range)
One thing to consider is that the entries aren't always perfect. Looking at June 22nd and the bullish div we had there, we still went lower and re-tapped the oversold line on the RSI to create a double divergence before reversing and going up approx 43%. But this excellent strike rate combined with a high R/R is enough reason to enter a BTC long.
Still keeping alt/USD shorts open as a hedge because volume hasn't kicked back in yet.
Opening a BTC long here with stop below the swing low (5900 range)
Trade active
this was timed well!in about 5% of profit now on this trade. pulled stop up slightly above entry to eliminate risk so that long positions can be added without violating risk management. if it goes the other way now it's ok, no more risk.
alt shorts closed in profit as stops were hit.
Trade closed: stop reached
stopped out
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