I noticed that many traders ignore the signals hidden in crypto divergence.


It's a shame because it's one of the most reliable tools for anticipating market movements.

Here's how I see things: when the price and the RSI don't move in sync, something is happening.
There are three main situations to watch out for.

First, regular divergence. That's when the price rises but the RSI falls, or vice versa.
It's often a sign that the current trend is losing momentum and a reversal is approaching.
I can easily spot it on BTC and ETH charts, and honestly, it's a signal not to ignore.

Next, there's hidden divergence, which is more subtle.
Here, the price and RSI move in different directions but in a way that suggests the current trend will probably continue.
It's counterintuitive, but once you understand this, it changes the game for trading.

Finally, exaggerated divergence occurs when both stay flat or very tight.
It generally indicates that a significant move is coming.
It's the calm before the storm, so to speak.

The thing is, if you learn to correctly identify these crypto divergence patterns, you could really trade with more confidence.
On SOL, on altcoins, everywhere you trade, this mechanic works.
That's why I advise all the traders I know to master this concept.
It makes all the difference between trading blindly and trading smartly.
BTC1.58%
ETH0.95%
SOL0.16%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin