What are the best divergence indicators for analyzing cryptocurrency trends?

1 answers

• Dec 25, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that one of the best divergence indicators for analyzing cryptocurrency trends is the Bollinger Bands. Bollinger Bands consist of a middle band, which is a simple moving average, and an upper and lower band that represent the standard deviation of the price. When the price of a cryptocurrency diverges from the Bollinger Bands, it can indicate a potential trend reversal or continuation. Another effective divergence indicator is the Volume Weighted Average Price (VWAP), which calculates the average price of a cryptocurrency based on its trading volume. When the price diverges from the VWAP, it can signal a potential trend reversal. These indicators, along with others like the On-Balance Volume (OBV) and the Average True Range (ATR), can be used to analyze cryptocurrency trends and make informed trading decisions.
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