📖 #VersetsCrypto Edition 261 UNDERSTANDING RSI DIVERGENCES.
Price and indicators do not always tell the same story.
On Binance, see the MACD charts of the respective assets $BTC $TSLA $ETH ; the RSI often helps traders observe the true strength of the move.
📊 A divergence appears when price continues to rise, but the indicator slows down or reverses; or when price continues to fall while the indicator starts to strengthen.
These situations can reveal ✔ a loss of momentum, ✔ a weakening of momentum, or ✔ an approach to a potential reversal.
An experienced trader doesn’t look only at the direction of price. They also watch the quality of the move.
📖 "The cautious considers his steps." Proverbs 14, 15
🎯 A divergence does not guarantee an immediate reversal, but it often calls for greater vigilance.
#BinanceSquare #BinanceWriteToEarn #RSI #trading
Price and indicators do not always tell the same story.
On Binance, see the MACD charts of the respective assets $BTC $TSLA $ETH ; the RSI often helps traders observe the true strength of the move.
📊 A divergence appears when price continues to rise, but the indicator slows down or reverses; or when price continues to fall while the indicator starts to strengthen.
These situations can reveal ✔ a loss of momentum, ✔ a weakening of momentum, or ✔ an approach to a potential reversal.
An experienced trader doesn’t look only at the direction of price. They also watch the quality of the move.
📖 "The cautious considers his steps." Proverbs 14, 15
🎯 A divergence does not guarantee an immediate reversal, but it often calls for greater vigilance.
#BinanceSquare #BinanceWriteToEarn #RSI #trading