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Web3  · 05/17/22

Div / AltcoinTrading.NET glossary

Div, AKA Divergence. Covers regular div, hidden div and exaggerated divergence with links to more info on how to trade them.
Altcoin Trading Blog

Key Points / Div

  1. Crypto traders use div as a short for divergence.

  2. Tools for Div: #bitfinex 

Divergences are a “level” indicator, they are too vague to justify opening of a position.

Still, they are an important aspect of technical analysis and can give you edge because of how easily they get missed or misinterpreted.

Types of Divergences

We distinguish regular divergence, hidden divergence and exaggerated divergence.

Regular Divergence is a sign of trend reversal. Price keeps the trend but indicator already shows the reversal.

  • Signal to short = regular divergence in tops. Price makes higher high but oscillator makes lower high. Underlying weakness, possible exhaustion at the end of a bull trend.
  • Signal to long = regular divergence in bottoms. Price makes lower low but oscillator makes higher low. Underlying strength, possible bottoming in progress.

Hidden Divergence is a divergence that follows the trend. Hidden divs show the market is inclined to continue the current trend.

  • Signal to short = hidden divergence in tops. Price makes lower highs but oscillator makes higher highs. Tends to be found on lower highs in a downtrend.
  • Signal to long = hidden divergence in bottoms. Price makes higher low but oscillator makes lower low. Tends to be found during continuation pauses in an uptrend.

Exaggerated Divergence is only different in that price makes double top or double bottom rather than new high or new low.

Once again: Divergence itself is not a strong enough signal to trigger a trading decision about entry or exit. More on trading divergences here

Best Tools for Trading Divergences

Read our list of tools for crypto traders for more free and freemium options.

An indepth look at Div is here.


DeFi Tools: Technical Analysis Scripts for DeFi Trading - DeFi trading tools and scripts for technical monitoring of DeFi markets. All scripts available for free on TradingView.
Divergences in Crypto Trading (Divergence Cheat Sheet inside) - Divergence is a disagreement between price and an oscillating indicator such as MACD or RSI. It is not strong enough an indicator to enter a position, but it gives an idea of the state of the market.
Script Spotlight: Automatic Divergences - In this series we are picking scripts for technical analysis that recently popped up in the TradingView daily popular feed.
VPVR Trading and Volume Profile Strategies - Volume Trading Strategies and how to automate them (the simpler ones). Your toolbox - TradingView, Cryptowatch and FTX Quant Zone.
Multiple time frame analysis: Trading several timeframes at the same time - On why it's constructive to trade multiple time frames at the same time and how to manage the stack of your positions and orders.
Strategy: Technical Analysis past ATH with Fibs - Now that we are past ATH levels again, let's reiterate how things *really* work around here.