This idea lists most of the instances of divergence on BTCUSD (Coinbase) since $19892 summit of December 2017 on 2H interval.
9 Seasons Rainbow Multiple Time Frames Pattern PRO
Base Time Frame: 2H, most upper ribbon of "9 Seasons Rainbow"
Longest Time Frame: 90H (3D + 18H), most lower ribbon of "9 Seasons Rainbow"
Instances of Divergences (Green Arrows)
29 instances, probability of profitability > 85%
Instances of Divergences (Red Arrows)
17 instances, probability of profitability > 90%
The value of divergence: it is not limited to fixed price and it happens on any Time Frame, when it encounters strong resistance or support.
The downside of divergence: high reward is coming with high risk, when the resistance or support being broken through, a breakout or breakdown may happen. Thus whales can use this to play with the market, with the recent case happened on April 1.
By using "9 Seasons Rainbow" Indicators, traders can monitor Divergence:
- Cross Multiple Time Frames on a single screen, without necessary to change time intervals /sessions
- Setting Alerts of divergence on All Time Frames on a click
Poll: Is Divergence the King or Queen of Cryptocurrency / Cryptoasset Trading Technical Analysis?
Please leave your comments.
This is only a personal opinion and does NOT serve as investing advice NOR trading advice.
Please make their own decisions, carefully assess risks and be responsible for your own investing and trading activities.
The arrows and rectangles are added manually according to signals of the indicators.
Bullish Divergence indicators Strong Support,
when Bull makes less and less profit from buying the support level,
eventually, the Support is going to be broken through.
In 9 Seasons Rainbow Indicator, Blue -> Fuchsia means Breakdown of a support.
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