Tuto 6: Is Divergence the King or Queen of Crypto Technical Analysis?

Divergence is one of the best technical analysis theories. Although not 100%, a very high probability of profitability is well known. 





This idea lists most of the instances of divergence on BTCUSD (Coinbase) since $19892 summit of December 2017 on 2H interval. 

Indicators used: 
RSI 
MACD 
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 Bullish Divergences (Green Arrows) 
29 instances, probability of profitability > 85% 
Signals: 
Blue ascending arrows in RSI & MACD 
Blue Ribbons in "9 Seasons Rainbow" 

Instances of Bearish Divergences (Red Arrows) 
17 instances, probability of profitability > 90% 
Signals: 
Yellow descending arrows in RSI & MACD 
Yellow Ribbons in "9 Seasons Rainbow" 

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: 
Visually 
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. 

DISCLAIMER 
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. 

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