It is without question that traditional and crypto market predictions and assessments are based on divergence, price swings, trend strength, and momentum. Knowing what to look for plays a key role in the potential for making a profit – or cutting one’s losses.
When market momentum begins to slow, it’s important to note that this does not always signal a reversal. Sometimes it means that the market players are beginning to consolidate before a new trend begins. When comparing price swings with a basic timeline, traders get a peek at the momentum and have a good idea which direction it may be heading.
Divergence setups are low-risk ways of buying close to the bottom of a bearish wave or selling close to the top of a bullish wave.
Imagine if you had the ability to project a valid exit point to turn a profit on an altcoin investment, or another scenario where you can anticipate the bottoming of a crypto asset for a low buy in entry point. Can you visualize the profit gains?
The technical tool to achieve this is through divergence setups.