What is divergence in stock & crypto?

The so called “Divergence” in Stock or Crypto is when price action (PA) and oscillator are following different paths — converging or diverging, and they can be strong, medium, weak or hidden, they are also classified as Class A, B and C for strong, medium and weak.

What is hidden divergence?

Hidden divergences are either bearish or bullish. Hidden bullish divergence is characterized by higher lows for the asset price and lower lows for the momentum indicator. Hidden bearish divergence is indicated by lower highs for the asset price and higher highs for the momentum indicator.

What is a comprehensive divergences cheat sheet?

Comprehensive Divergences Cheat-sheet with proper explanations. It is valid for all oscillating indicators, you can use it to evaluate MACD divergences as well as RSI divergences. We distinguish regular divergence, hidden divergence and exaggerated divergence.

How to find RSI divergences in crypto?

Most crypto traders look for RSI divergences on the StochRSI indicator. The thing to look for in the price action are highs and lows. Pick a pair of prominent highs if the market is trending up. Pick a pair of prominent lows if the market is trending down. Look at the indicator in the same area (just below your pair of highs or lows).