What are the common types of divergence patterns in the cryptocurrency market?

1 answers

• Prem SharmaJan 02, 2026 · a month ago
  Divergence patterns in the cryptocurrency market can be quite fascinating. Traders often look for these patterns as they can provide valuable insights into potential price movements. There are a few common types of divergence patterns that are worth knowing. Bullish divergence occurs when the price makes lower lows, but the indicator makes higher lows, suggesting a possible trend reversal to the upside. Bearish divergence, on the other hand, happens when the price makes higher highs, but the indicator makes lower highs, indicating a potential downward trend. Hidden divergence is a bit more complex and occurs when the price makes higher highs or lower lows, but the indicator shows the opposite. These patterns can be used by traders to make informed decisions and improve their trading strategies.
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