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Kc  · 09/01/22

Exaggerated divergence / AltcoinTrading.NET glossary

What do crypto traders call Exaggerated divergence and how to read it?
Altcoin Trading Blog

Key Points / Exaggerated divergence

  1. A type of divergence pattern

  2. Tools for Exaggerated divergence: #tradingview 

As any divergence, the Exaggerated Divergence a divergent development of price as compared to an oscillator.

Exaggerated divergence works like a regular divergence, except that price makes double top or double bottom rather than new high or new low.

For example: In regular bullish divergence, the price makes a lower low while an oscillator makes higher low, which is the bullish signal. An exaggerated divergence would show a double bottom while an oscillator would make higher low. Double bottom by itself is bullish, which is why the divergence is seen as stronger than a regular bullish div - hence the name.

For a more advanced analysis you can also look for divergences relatively to bbands instead of in plain price terms.

Best Tools for Trading Divergences

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

An indepth look at Exaggerated divergence is here.