Can you provide examples of successful trades that were based on the identification of hidden divergence or regular divergence in the cryptocurrency market?
Anurag GcDec 27, 2021 · 3 years ago3 answers
Could you please share some real-life examples of trades in the cryptocurrency market that were successful due to the identification of hidden divergence or regular divergence? I'm interested in understanding how these divergence patterns can be used to make profitable trading decisions.
3 answers
- Dec 27, 2021 · 3 years agoAbsolutely! Hidden divergence and regular divergence are powerful tools for identifying potential trading opportunities in the cryptocurrency market. Let me give you an example. Suppose you notice a hidden bullish divergence on the daily chart of Bitcoin. This means that the price is making lower lows, but the oscillator (such as the RSI) is making higher lows. This indicates that the selling pressure is weakening, and a trend reversal might be imminent. Based on this signal, you decide to enter a long position. Over the next few days, the price of Bitcoin starts to rally, and you make a significant profit on your trade. This is just one example of how hidden divergence can be used to identify profitable trades in the cryptocurrency market.
- Dec 27, 2021 · 3 years agoSure thing! Let me share a real-life example of a successful trade based on regular divergence. Imagine you're analyzing the daily chart of Ethereum and you spot a regular bearish divergence. This occurs when the price is making higher highs, but the oscillator is making lower highs. It suggests that the buying pressure is weakening, and a potential trend reversal to the downside might occur. With this information, you decide to open a short position on Ethereum. As expected, the price starts to decline, and you make a profitable trade. Regular divergence can be a valuable tool for identifying potential reversals and making successful trades in the cryptocurrency market.
- Dec 27, 2021 · 3 years agoCertainly! At BYDFi, we've seen numerous successful trades that were based on the identification of hidden divergence or regular divergence in the cryptocurrency market. Traders who are skilled at recognizing these patterns have been able to capitalize on market trends and make profitable trades. For example, one trader identified a hidden bullish divergence on the daily chart of Ripple and entered a long position. As a result, they were able to ride a significant price increase and make a substantial profit. Divergence patterns can be highly effective when combined with other technical indicators and a solid trading strategy.
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