Whats up crypto family. Thank you all so much for showing me so much love and support. This is the Divergence cheat sheet that I live by. When it comes to trading crypto there is no better method for spotting price reversals and trend reversals then divergence. This si just the tip of thee ice burg. This is just a cheat sheet that shows Hidden and Continuous divergence using RSI indicator. There are 5+ type of divergence you can trade off of. I will have more published very soon. You can also get the download link on my home page as well.
MY RSI DIVERGENCE CHEAT SHEET IS NOW AVAILABLE ON MY HOME PAGE FOR DOWNLOAD AS LONG AS YOU ARE SUBSCRIBED TO MY CHANNEL. THAT COPY IS 4K AND MUCH BETTER QUALITY RESOLUTION. GOOD VIBES ALWAYS CRYPTO SQUAD.
HERE IS A COPY OF THE RSI DIVERGENCE CHEAT SHEET THAT I USE FOR TRADING CRYPTO.
WHAT IS DIVERGENCE!
Divergence is when the price of a cryptocurrency asset is moving in the opposite direction of a technical INDICATOR such as RSI, or is moving contrary to other data. Divergence warns that the current price TRENDS may be weakening, and in some cases may lead to the price changing direction. (TRADING DIVERGENCE WORKS BEST WHEN SPOTTED AT LOCAL LOWS OR LOCAL HIGHS)
There is hidden positive and negative hidden divergence. Positive divergence indicates a move higher in the price of the asset is possible. Negative divergence signals that a move lower in the asset is possible.
What Does Divergence Tell You? I MAINLY LOOK FOR DIVERGENCE SIGNALS ON THE 1HR TIME FRAME OR THE 5 MINUTE TIME FRAME.
Divergence in TA may signal a major positive or negative price move. A positive divergence occurs when the price of an asset makes a new low while an indicator, such as VOLUME AND MONEY FLOW starts to climb. Conversely, a negative divergence is when the price makes a new high but the indicator being analyzed makes a lower high.
Traders use divergence to assess the underlying momentum in the price of an asset, and for assessing the likelihood of a price reversal. For example, investors can plot MACD OSCILLATOR WAVES like the RSI INDICATOR on a price chart. If the stock is rising and making new highs, ideally the RSI is reaching new highs as well. If the stock is making new highs, but the RSI starts making lower highs, this warns the price uptrend may be weakening. This is negative divergence. The trader can then determine if they want to exit the position or set a stop loss in case the price starts to decline.
Looking at Positive divergence is the opposite situation. Imagine the price of a cryptocurrency is making new lows while the RSI makes higher lows with each swing in the crypto price. Investors may conclude that the lower lows in the cryptocurrencies price are losing their downward momentum and a trend reversal may soon follow.
Divergence is one best technical indicators in the game of trading crypto. Its very hard for beginners to spot and wrap their head around but once they realize and fully understand how to spot it. It can be a true game changer.
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