BNB Looking to have a Bull Divergence
What is Bullish Divergence?
Bullish divergence, also known as convergence, happens when the price forms a lower low compared to the indicator’s higher low position.
In this scenario, traders should bet on an uptick in prices. As indicators are used to forecast price direction, an increase in the indicator’s value, therefore, implies a price increase.
Relative Strength Index (RSI)
Another popular indicator for bullish divergence is The Relative Strength Index (RSI).
There is a single line on the RSI indicator, which measures overbought and oversold levels. With the RSI acting as a forward-looking indicator, traders may easily notice divergences in the price action of crypto assets.
A divergence pattern can be identified by a trader when the RSI’s top or bottom range is split from the price actions. For traders, this implies that they may have a head start on entering the crypto asset market.
Bullish divergence, also known as convergence, happens when the price forms a lower low compared to the indicator’s higher low position.
In this scenario, traders should bet on an uptick in prices. As indicators are used to forecast price direction, an increase in the indicator’s value, therefore, implies a price increase.
Relative Strength Index (RSI)
Another popular indicator for bullish divergence is The Relative Strength Index (RSI).
There is a single line on the RSI indicator, which measures overbought and oversold levels. With the RSI acting as a forward-looking indicator, traders may easily notice divergences in the price action of crypto assets.
A divergence pattern can be identified by a trader when the RSI’s top or bottom range is split from the price actions. For traders, this implies that they may have a head start on entering the crypto asset market.