Trade Bitcoin Trading

Types of Bitcoin Divergence

Types of Bitcoin Divergence Definition - Divergence is a trading setup used by Bitcoin traders - Bitcoin Trade Divergence Setups involves looking at a bitcoin chart & a bitcoin indicator - for example MACD indicator.

To find this Bitcoin Trade Divergence Setups setup find 2 chart points which bitcoin price makes a new swing high or a new swing low but the MACD indicator does not do the same, this bitcoin signals a divergence between bitcoin price & MACD indicator momentum.

For a Bitcoin Trade Divergence Setups setup we look for two chart points, 2 highs which form an M shape on the chart or 2 lows that form a W-Shape on the chart. Then search for the same M shape or W-shape in the Bitcoin MACD indicator.

Example of a Divergence Trade Setup:

In the bitcoin crypto chart below we spot two chart points, point A & point B (swing highs). These two bitcoin crypto currency points form an M shape on the bitcoin crypto currency price chart.

Then using bitcoin MACD technical indicator we check the highs made by the MACD bitcoin indicator, these are highs that are directly below Chart points marked A and B.

We then plot one line on the chart & another line on MACD indicator.

Types of Crypto Divergence - Types of Bullish Divergence Trading Setups

Bitcoin Trade Divergence Setups Signals - Types of Bitcoin Divergence Meaning - Types of Bitcoin Divergence Meaning

The bitcoin chart above displays example of hidden bearish Divergence setup.

hat is Bitcoin Trade Divergence Setups Types of Bitcoin Divergence

In order to trade Bitcoin Divergence Setups trading signal we check for the following:

  • HH : Higher High : 2 highs but last is higher
  • LH : Lower High - two highs but last is lower
  • HL : Higher Low - 2 lows but last is higher
  • LL : Lower Low - two lows but last is lower

Bitcoin Trade Divergence Setups Terms Definition: Different Types of Bitcoin Divergence Setups - Types of Bitcoin Divergence

M shapes on Bitcoin charts dealing with BTCUSD price Highs

Types of Bearish Bitcoin Divergence Trading Setups - Types of Bullish BTCUSD Divergence Setups

W Shapes on Bitcoin charts dealing with BTCUSD price lows

Types of Bearish Bitcoin Divergence Setups - Types of Bullish Bitcoin Divergence Setups - Types of BTCUSD Divergence Setups

Types of Bearish BTCUSD Divergence Setups - Types of Bullish Bitcoin Crypto Currency Divergence Trading Setups

Types of Bitcoin Divergence Setups - Bitcoin Trade Divergence Analysis Strategies Guides PDF

Types of Bearish BTCUSD Divergence Trading Setups - Types of Bullish BTCUSD Crypto Divergence Setups

Types of Bearish Bitcoin Trade Divergence Setups BTCUSD - Types of Bullish BTCUSD Divergence Setups

Types of Divergence - Types of Bearish Bitcoin Divergence Setups - Types of Bullish Bitcoin Divergence Setups - Types of Bitcoin Divergence Meaning - Types of Bitcoin Divergence Meaning

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