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What are the potential risks and limitations of relying on bullish divergence in cryptocurrency trading?

avatarBence TóthNov 25, 2021 · 3 years ago1 answers

In cryptocurrency trading, what are the potential risks and limitations of relying on bullish divergence as a trading strategy?

What are the potential risks and limitations of relying on bullish divergence in cryptocurrency trading?
Cryptocurrency
Trading
Risks

1 answers

  • avatarNov 25, 2021 · 3 years ago
    As an expert at BYDFi, I can say that relying solely on bullish divergence in cryptocurrency trading is not recommended. While it can be a useful tool, it should not be the sole basis for making trading decisions. Bullish divergence signals can be misleading and may not always result in profitable trades. It is important to consider other factors such as market trends, volume, and overall market sentiment when making trading decisions. Traders should use bullish divergence as one of many tools in their arsenal and not rely on it exclusively.

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