RSI Bitcoin Indicator Divergence Bitcoin Trade Setups
Bitcoin Divergence is one of the trade setups used by Bitcoin traders. It involves looking at a chart and one more indicator. For our example we shall use the RSI indicator.
To spot this divergence setup find two chart points at which bitcoin price makes a new swing high or a new swing low but the RSI cryptocurrency indicator doesn't, indicating a divergence setup between bitcoin price & momentum.
RSI Bitcoin Divergence Example:
In the chart below we spot two chart points, point A and point B (swing highs)
Then using RSI technical indicator we check the highs made by the bitcoin RSI technical indicator, these are highs that are directly below the bitcoin Chart points A and B.
We then draw one line on the chart and another line on the RSI indicator.
RSI Divergence Bitcoin Setup - Bitcoin Trade Divergence using RSI Crypto Technical Indicator
How to spot bitcoin divergence
In order to identify this divergence setup we look for the following:
HH=Higher High- 2 highs but the last one is higher
LH= Lower High- 2 highs but the last one is lower
HL=Higher Low- 2 lows but the last one is higher
LL= Lower Low- 2 lows but the last one is lower
First let us look at the illustrations of these bitcoin terms
Divergence Bitcoin Trading Terms Definition
Bitcoin Divergence Terms Definition Examples
There are 2 different types of divergence setups:
- Classic BTCUSD Trading Divergence
- Hidden Bitcoin Trading Divergence
