1 month divergence price/RSI

lucacrebbe

Active Trader
Jun 26, 2017
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Would you consider this this divergence as meaningful?
It is at 1 month of bitcoin charrt
In my opinion is not meaningful because:

1) Bitcoin had such a great spikes up in price followed by great pumps that any analysis on divergence on such a long timeframe is useless
2) Analisys on divergences on such a long timeframe are useless in general and in particular on an asset like btc which had huge spike dictated by euphoria and fomo

What do you say about this? Would you consider that divergence as meaningful?

Meanwhile on a smaller timeframe (daily) I have this bullish divergence (the black lines on the pic ''dive'' ) between RSI and price (pic ''dive''). Which one would you consider the most?
Also which profit target would you put for the divergence on the smaller time frame?
 

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lucacrebbe

Active Trader
Jun 26, 2017
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The 1-month chart contains no divergence - the lower high on the chart is mirrored with the lower high on RSI. The 12-hour chart has a divergence between April 30 and May 7.

In the second case how would one set a take profit target based on divergences? Where one would ideally set a take profit (based on that divergence)?