What is the best divergence indicator for trading cryptocurrencies on TradingView?
Jeremy AlonsoDec 17, 2021 · 3 years ago3 answers
I'm looking for the best divergence indicator to use when trading cryptocurrencies on TradingView. Can anyone recommend a reliable and effective indicator that can help me identify potential trend reversals and make better trading decisions?
3 answers
- Dec 17, 2021 · 3 years agoOne of the best divergence indicators for trading cryptocurrencies on TradingView is the Relative Strength Index (RSI). RSI is a popular momentum oscillator that can help identify overbought and oversold conditions in the market. When the price of a cryptocurrency diverges from the RSI, it can indicate a potential trend reversal. However, it's important to note that no indicator is foolproof, and it's always recommended to use multiple indicators and conduct thorough analysis before making any trading decisions.
- Dec 17, 2021 · 3 years agoIn my experience, the Moving Average Convergence Divergence (MACD) indicator is highly effective for trading cryptocurrencies on TradingView. MACD is a trend-following momentum indicator that can help identify potential trend reversals. It consists of two lines - the MACD line and the signal line. When the MACD line crosses above the signal line, it can signal a bullish trend reversal, and vice versa. However, it's important to consider other factors such as volume and market sentiment before making any trading decisions.
- Dec 17, 2021 · 3 years agoBased on my experience as a trader at BYDFi, I would recommend using the Stochastic Oscillator as a divergence indicator for trading cryptocurrencies on TradingView. The Stochastic Oscillator is a momentum indicator that compares a cryptocurrency's closing price to its price range over a certain period of time. When the Stochastic Oscillator diverges from the price, it can indicate a potential trend reversal. However, it's important to note that no indicator is 100% accurate, and it's always recommended to combine multiple indicators and conduct thorough analysis before making any trading decisions.
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