Price Makes New High, Momentum Doesn't
Trick: Watch RSI (Relative Strength Index)
If $BTC at new high BUT RSI doesn't make new high = DIVERGENCE
Divergence = reversal incoming (48-72h)
Example:
- BTC at $87K (new high)
- RSI at 65 (lower than 2 weeks ago when it was at $86K)
- = Top forming
This catches moves before charts show it.
#TradingSignals #TechnicalAnalysis
Trick: Watch RSI (Relative Strength Index)
If $BTC at new high BUT RSI doesn't make new high = DIVERGENCE
Divergence = reversal incoming (48-72h)
Example:
- BTC at $87K (new high)
- RSI at 65 (lower than 2 weeks ago when it was at $86K)
- = Top forming
This catches moves before charts show it.
#TradingSignals #TechnicalAnalysis