Divergences and their impact

in #bitcoin3 years ago

assumption: how far a divergence's impact goes? how deep or how high it sends the price?

this is a million dollar question!

look at below chart of Bitcoin weekly (which is HOT HOT HOT right now!)

btcw.png

if you compare the first regular bearish divergence (the green lines on the price action and RSI)

with the

second regular bearish divergence (the red lines on the price action and RSI)

you will notice:

  1. the price within the 2nd Div., has lost momentum. it has a lower slope than previous one.
  2. the indicator's slope has risen.
  3. the impact of the first div. is much greater than the 2nd one (the very next red candles)

for me the conclusion is:

  1. I can't measure a div's impact with its characteristics
  2. after a div. the price action techniques are the best way to predict the lows. as you can see in the picture, two important lines have supported the drop.

there is another issue about divs that I think which I call it the domino effect. it looks the multi time frame divs. you can imagine what I mean but anyway I will put it in another post later.

cheers

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Interesting. So around 12 of April you still think it could be a good dip to power up?:)

I still think there is a higher probability of deeper corrections before a new ATH

How low in your opinion? The same dates?

idk! you should move level to level.
55k, 54k, 52.4k, 46.4k ....

ha, we are past 60k, what is the situation now? Will you prepare a post about it?

Wow. You're still on HIVE @honarparvar ?

I was just thinking about you lately and I was curious to find out how's your life.

Consider joining our PH community discord server:
https://discord.gg/uWMJTaW

I will gladly DM you and ask how have you been doing.

cheers buddy, Piotr

hi Piotr
sorry I got this so late! thanks we are all fine and safe
I hope you do great too
will talk to you soon buddy