1 month divergence price/RSI

[lucacrebbe]

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?

 

[Enivid]

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.

 

[lucacrebbe]

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)?

 

[Enivid]

Sorry, I don't trade divergences, but as far as I know support/resistance SL/TPs work best when trading divergences.

 

[lucacrebbe]

Sorry, I don't trade divergences, but as far as I know support/resistance SL/TPs work best when trading divergences.

Can I know why you don't trade divergences?

 

[Enivid]

Can I know why you don't trade divergences?

I prefer other methods - Chart Patterns, News Trading, Fundamental Analysis.

 

[lucacrebbe]

Chart Patterns

Which confirmations do you wait before to jump into a trade?

 

[Enivid]

Which confirmations do you wait before to jump into a trade?

I mostly use a buffer zone for breakouts and the whole setup should be making some sense from the fundamental point of view because I trade on high timeframes (H4/D1/W1).

 

[Zuki]

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?

For month bearish Divergence to occur . Btcusd would have to break the last Higher High (fractal swing high) for regular bearish Divergence.

If the oscillator break the high value of where u have point B (ending point of arrow ) and price respect the swing high (Higher High) then you have bearish Hidden Divergence.

Learn market structure then identify fractal swing high. U use the highest high_close price and lowest low_Close price of the fractal swing as starting point for Divergence.


Use MACD it's easily to spot hidden Divergence as it's a histogram bar .