BULLISH DIV and the BEARISH DIV FOR THOSE THAT WANTS TO SHORT ETH(INVERTED ETHUSD CHART)
THE BULLISH DIV
Bullish divergence occurs when price makes a lower low but the indicator forms higher lows. The two data streams diverge in direction. Price will eventually, usually, follow the indicator higher.
Price trend Downward forming lower valleys and Indicator trend Higher valleys. On the price chart, it has three diffrent touches.
AS SHOWN BELOW:
THE INVERTED ETHUSD CHART: this is the inverse of the chart above,still pegged at the same price target.
But in this case it is showing a bearish div:
Bearish divergence occurs when price makes a higher high but the indicator forms lower highs. The two data streams diverge in direction. Price will eventually, usually, follow the indicator lower.
Price trend Upward forming higher peaks and Indicator trend Lower peaks.
A support at 400usd, should hold price up, before an uptrend will set in.
SELL: $470 up to $530
STOP LOSS: traders should move this up or down as price moves in these directions.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.