The power of divergences
It's always easy to analyze charts in hindsight. Those of you watching the 4 hour last week hopefully noticed the growing bullish divergence between the price candles and the RSI. This is an extremely powerful indicator to watch for. As the price of BTC set lower lows over the weekend the RSI was printing higher lows. Remember, always make trades on more than 1 piece of TA, but be mindful to watch how the RSI and price are moving.
Some quick reminders on basic divergence types:
Bullish focuses on the lows: Price making lower lows, RSI making higher lows at the same time.
Bearish focuses on the highs: Price making higher highs, RSI making lower highs at the same time
Some quick reminders on basic divergence types:
Bullish focuses on the lows: Price making lower lows, RSI making higher lows at the same time.
Bearish focuses on the highs: Price making higher highs, RSI making lower highs at the same time
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