What is bullish divergence in MACD and how does it impact cryptocurrency trading?

3 answers

• Jan 20, 2022 · 3 years ago
  Bullish divergence in MACD refers to a situation where the price of a cryptocurrency is making lower lows while the MACD indicator is making higher lows. This indicates a potential reversal in the downtrend and suggests that the price may start to rise. In cryptocurrency trading, bullish divergence in MACD can be seen as a bullish signal, indicating that it may be a good time to buy or hold the cryptocurrency.
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• Jan 20, 2022 · 3 years ago
  When there is bullish divergence in MACD, it means that there is a discrepancy between the price action and the MACD indicator. This can happen when the price of a cryptocurrency is showing weakness, but the MACD indicator is showing strength. This can be a sign that the selling pressure is weakening and that buyers may start to take control. As a result, it can impact cryptocurrency trading by attracting more buyers and potentially driving up the price.
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• Jan 20, 2022 · 3 years ago
  Bullish divergence in MACD is an important concept in technical analysis for cryptocurrency trading. It indicates a potential shift in market sentiment from bearish to bullish. When the MACD indicator shows bullish divergence, it suggests that the selling pressure is decreasing and that buyers may step in. This can lead to a reversal in the price trend and create an opportunity for traders to profit. At BYDFi, we closely monitor MACD indicators and use them as part of our trading strategy to identify potential bullish divergences and make informed trading decisions.
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