MACD Bitcoin Classic Bullish and Bearish Divergence
MACD Bitcoin Classic divergence is used as a possible sign for a trend reversal. MACD classic divergence is used when looking for an area where price could reverse and start going in the opposite trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a bitcoin trade.
1. It is a low risk method to sell near the btcusd trading market tops or buy near the btcusd market bottom, this makes the risk on your trades are very small relative to the potential reward.
2. It is used to predict the optimum point at which to exit a Bitcoin trade.
There are two different types of Bitcoin Classic Divergence:
- BTCUSD Trading Classic Bullish Divergence
- Bitcoin Trading Classic Bearish Divergence
Bitcoin Classic Bullish Divergence in Bitcoin Trading
Classic bullish divergence in bitcoin trading occurs when price is forming lower lows ( LL ), but the oscillator technical indicator is forming higher lows ( HL ).
MACD Bitcoin Classic Bullish Divergence in Bitcoin Trading - MACD Divergence Strategy
Classic bullish divergence in bitcoin trading warns of a possible change in the trend from down to up. This is because even though the price went lower the volume of sellers who pushed the price lower was less as illustrated by the MACD cryptocurrency indicator. This indicates underlying weakness of the downwards market trend.
Classic bearish divergence in Bitcoin Trading
Classic bearish divergence in bitcoin trading occurs when price is showing a higher high ( HH ), but the oscillator technical indicator is showing a lower high ( LH ).
MACD Bitcoin Trading Classic Bearish Divergence in Bitcoin Trading - MACD Divergence Strategy
Classic bearish divergence warns of a possible change in btcusd trading market trend from up to down. This is because even though the price went higher the volume of buyers who pushed the price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upward market trend.
