Can you provide examples of how divergence can be used to predict cryptocurrency price movements?

1 answers

• Jan 27, 2022 · 3 years ago
  Absolutely! Divergence is a powerful tool for predicting cryptocurrency price movements. One example is the bullish divergence, which occurs when the price of a cryptocurrency makes a lower low, but the corresponding indicator, such as the Relative Strength Index (RSI), makes a higher low. This suggests that the selling pressure is weakening and a potential price reversal or upward movement may occur. Another example is the bearish divergence, where the price makes a higher high, but the indicator makes a lower high, indicating a potential downward movement. By identifying these divergences, traders can make informed decisions on when to buy or sell cryptocurrencies.
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