Hidden Bullish and Bitcoin Hidden Bearish Divergence Bitcoin Trading

Hidden divergence is used as a possible signal for a bitcoin trend continuation after the bitcoin price has retraced. It's a trading signal that the original bitcoin trend is resuming. This is best setup to trade because it's in same direction as that one of the continuing price trend.

Bitcoin Hidden Bullish Divergence

This setup happens when bitcoin trading price is making a higher low ( HL ), but the oscillator trading is displaying a lower low ( LL ). To remember these setups easily think of them as W-shapes on Chart patterns. It occurs when there's a retracement in an upward BTCUSD Crypto Currency trend.

The example illustrated below illustrates screen shot of this btcusd crypto currency setup, from the image the bitcoin price made a higher low (HL) but the trading indicator made a lower low (LL), this portrays that there was a diverging trade signal between the bitcoin price & indicator. This signal illustrates that soon the btcusd cryptocurrency market up bitcoin trend is going to resume. In other words it displays this was just a retracement in an upward bitcoin trend.

Hidden Bullish Divergence in BTCUSD - Hidden Bearish Divergence in Bitcoin Trading

This confirms that a retracement move is complete and indicates underlying momentum of an upward cryptocurrency trend.

BTCUSD Hidden Bearish Divergence

This setup happens when bitcoin trading price is making a lower high (LH), but the oscillator trading is showing a higher high (HH). To remember these setups easily think of them as M-shapes on Chart patterns. It occurs when there's a retracement in a downward Bitcoin trend.

The example shown below illustrates screen shot of this bitcoin setup, from the image the bitcoin price made lower high (LH) but the trading indicator made a higher high (HH), this portrays that there was a divergence between the bitcoin price and the indicator. This portrays that soon the btcusd market down bitcoin trend is going to resume. In other words it displays this was just a retracement in a downwards trend.

Bitcoin Hidden Bearish Divergence Example in Bitcoin - Hidden Bullish Divergence in Bitcoin Trading

This confirms that a retracement move is complete & indicates under-lying momentum of a downwards cryptocurrency trend.

Other popular indicators used are Commodity Channel Index indicator (Commodity Channel Index Indicator), Stochastic Oscillator Technical Indicator, RSI and MACD. MACD and RSI are the best technical indicators.

NB: Hidden divergence pattern is the best type divergence pattern to trade because it gives a trading signal that is in the same direction with the current trend, thus the setup has a high reward to risk ratio. This setup provides for the best possible market entry.

However, a bitcoin trader should combine this cryptocurrency trading setup with another indicator like the stochastic oscillator or moving average & buy when bitcoin is oversold, and sell when bitcoin is overbought.

Combining Hidden Divergence Pattern with Moving Average Crossover Strategy Method

A good indicator to combine these bitcoin trading set ups is the moving average indicator using the moving average crossover method. This will create a good trading strategy.

Hidden Bullish Divergence in BTCUSD - Hidden Bearish Divergence in BTCUSD Trading

Moving Average Crossover Strategy Method

In this method, once the signal is given, a trader will then wait for the moving average cross-over method to give a buy/sell cryptocurrency trading signal in the same direction, if there's a bullish divergence setup between the bitcoin price & technical indicator, wait for the moving average cross over trading strategy to give an up-ward cross over signal, while for a bearish diverging setup wait for the moving average crossover method to give a downwards bearish crossover signal.

By combining this cryptocurrency signal with other technical indicators this way a trader will avoid whip-saws when it comes to trading this bitcoin signal.

Combining with Bitcoin Fibonacci Retracement Levels

For this example we shall use an upward market trend. We shall use the MACD.

Because the hidden divergence setup is just a price retracement in an up-ward bitcoin trend we can combine this cryptocurrency signal with the most popular retracement tool that is the Fib retracement areas. The example illustrated below displays that when this cryptocurrency set up appeared on trading chart, bitcoin price had just hit the 38.2% level. When bitcoin price tested this point, this would have been a good level to set a buy order.

Bitcoin Trade Hidden Bullish Divergence on Upward Bitcoin Trend Combined with Fibonacci Retracement

Combining with Bitcoin Fibo Extension Levels

In the cryptocurrency trading example above once the buy bitcoin trade was placed, a btc/usd trader would then need to calculate where to set the take profit order for this trade position. To do this a bitcoin trader would need to use the Bitcoin Fibo Expansion Levels.

The Fibonacci extension was drawn as shown on the btcusd chart as displayed & illustrated below.

Fibo Extension Levels Combined with Bitcoin Hidden Bullish Divergence - Hidden Bullish Divergence in Bitcoin Trading

For this example there were three tp order areas:

Expansion Level 61.80% - 131 pips profit

Extension Level 100.00% - 212 pips profit

Extension Level 161.80% - 337 pips profit

From this trading strategy combined with Fib would have provided a good trading strategy with a good amount of profit set using these take profit order areas.

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