Can you explain the concept of hidden divergence in cryptocurrency trading?

3 answers

• Sayant SunilFeb 13, 2025 · 5 months ago
  Hidden divergence in cryptocurrency trading refers to a situation where the price of a cryptocurrency and an oscillator indicator, such as the Relative Strength Index (RSI), move in opposite directions. It is called 'hidden' because it is not easily visible on the price chart. This divergence indicates a potential reversal in the price trend. Traders use hidden divergence to identify buying or selling opportunities and make informed trading decisions. It is an important concept in technical analysis and can be a useful tool for predicting future price movements in cryptocurrency markets.
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• adan volkenJun 25, 2025 · a month ago
  Hidden divergence is like finding a hidden treasure in the cryptocurrency market. It's a powerful tool that helps traders spot potential trend reversals. When the price of a cryptocurrency makes higher highs but the oscillator indicator makes lower highs, or when the price makes lower lows but the oscillator indicator makes higher lows, it indicates hidden divergence. This can be a signal that the current trend is losing momentum and a reversal may be imminent. By recognizing hidden divergence, traders can adjust their trading strategies and take advantage of potential profit opportunities.
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• bakayarouuOct 28, 2021 · 4 years ago
  Hidden divergence is a concept that is widely used by traders in the cryptocurrency market. It is a technical analysis tool that helps identify potential trend reversals. When the price of a cryptocurrency and an oscillator indicator, such as the Moving Average Convergence Divergence (MACD), show opposite movements, it indicates hidden divergence. This can be a signal that the current trend is weakening and a reversal may occur. Traders use hidden divergence to confirm their trading decisions and improve their chances of making profitable trades. It is important to note that hidden divergence should be used in conjunction with other technical indicators and analysis techniques for more accurate predictions.
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