DivergenceFor the technical analysis, I use the trading view website, but
this is also the same as Binance. So to add coins click the top left corner and
choose the coin pair. To select future coins, Type the coin and type PERP after
the coin name.
To join trading view – click here
This is really important part in trading
If the momentum indicator goes the opposite direction from the price line then it is called divergence.
Name - Divergence
Indicators- Relative Strength Index
Settings- Go to indicators > Add Relative Strength Index indicator
Strategy
Bullish Divergence - When the price line has higher highs but the RSI has lower highs it is called bullish divergence. This will find in an uptrend and after this most probably the market will be reversed.
Bearish Divergence - When the price line has lower lows but the RSI has higher lows it is called bearish divergence. This will find in an downtrend and after this most probably the market will be reversed.
Hidden Bullish Divergence - When the price line has higher lows but the RSI has lower lows it is called hidden bullish divergence. This will find in an uptrend and after this most probably the market will go in the same direction.
Hidden Bearish Divergence - When the price line has lower highs but the RSI has higher highs it is called hidden bearish divergence. This will find in an downtrend and after this most probably the market will go in the same direction.
I have to say every strategy has only a 60% success rate. So every trade will
not succeed but these strategies will help you to increase your win rate. If
you have a doubt you can back-test and check whether it works or not. Also, you
can back-test those strategies and find the best combination which suitable for
you.
For the technical analysis, I use the trading view website, but
this is also the same as Binance. So to add coins click the top left corner and
choose the coin pair. To select future coins, Type the coin and type PERP after
the coin name.
To join trading view – click here
This is really important part in trading
If the momentum indicator goes the opposite direction from the price line then it is called divergence.
Name - Divergence
Indicators- Relative Strength Index
Settings- Go to indicators > Add Relative Strength Index indicator
Strategy
Bullish Divergence - When the price line has higher highs but the RSI has lower highs it is called bullish divergence. This will find in an uptrend and after this most probably the market will be reversed.
Bearish Divergence - When the price line has lower lows but the RSI has higher lows it is called bearish divergence. This will find in an downtrend and after this most probably the market will be reversed.
Hidden Bullish Divergence - When the price line has higher lows but the RSI has lower lows it is called hidden bullish divergence. This will find in an uptrend and after this most probably the market will go in the same direction.
Hidden Bearish Divergence - When the price line has lower highs but the RSI has higher highs it is called hidden bearish divergence. This will find in an downtrend and after this most probably the market will go in the same direction.
I have to say every strategy has only a 60% success rate. So every trade will
not succeed but these strategies will help you to increase your win rate. If
you have a doubt you can back-test and check whether it works or not. Also, you
can back-test those strategies and find the best combination which suitable for
you.