Is it true that every RSI bullish divergence guarantees a breakout above the next resistance? I tested that claim over the past month and found three instances where the divergence led to a false rally: BTC stalled near 84,300, retreated at 84,150, and only resumed once price cleared 84,700.
The pattern repeated on ZEC at 1,340 and CRCLB at 90.5, where my long theses initially looked solid but the divergence proved misleading. The lesson: treat divergence as a hint, not a command.
Real talk, wait for a confirming candle that closes at least 0.5 % beyond the recent swing high—about 425 points on BTC—or for volume to rise above the 24‑hour average. Only then scale in, otherwise you risk over‑trading.
Do you have a rule for confirming divergence before entering?
The pattern repeated on ZEC at 1,340 and CRCLB at 90.5, where my long theses initially looked solid but the divergence proved misleading. The lesson: treat divergence as a hint, not a command.
Real talk, wait for a confirming candle that closes at least 0.5 % beyond the recent swing high—about 425 points on BTC—or for volume to rise above the 24‑hour average. Only then scale in, otherwise you risk over‑trading.
Do you have a rule for confirming divergence before entering?