What is hidden bearish divergence in RSI and how does it affect cryptocurrency trading?

3 answers

• Nov 24, 2021 · 3 years ago
  Hidden bearish divergence in RSI is a technical analysis concept that occurs when the price of a cryptocurrency makes a higher high, but the RSI indicator makes a lower high. This indicates a potential reversal in the price trend. In cryptocurrency trading, hidden bearish divergence can be used as a signal to sell or short a cryptocurrency, as it suggests that the price may soon start to decline. Traders often use RSI along with other technical indicators to confirm their trading decisions.
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• Nov 24, 2021 · 3 years ago
  Hidden bearish divergence in RSI can have a significant impact on cryptocurrency trading. When this pattern occurs, it suggests that the bullish momentum is weakening and a bearish reversal may be imminent. Traders who spot hidden bearish divergence may choose to sell their cryptocurrency holdings or open short positions to take advantage of the potential price decline. However, it's important to note that technical analysis indicators like RSI are not foolproof and should be used in conjunction with other analysis methods.
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• Nov 24, 2021 · 3 years ago
  Hidden bearish divergence in RSI is a useful tool for cryptocurrency traders to identify potential trend reversals. When the RSI indicator shows hidden bearish divergence, it indicates that the price may soon start to decline. This can be a valuable signal for traders to sell their cryptocurrency holdings or open short positions. At BYDFi, we provide traders with a range of technical analysis tools, including RSI, to help them make informed trading decisions.
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