I just saw that many altcoins have diverged from their hourly lines.
Maybe many brothers still don’t know what divergence is? Now let’s talk about it briefly.
Divergence literally means the opposite direction, or inconsistency. Generally, there are divergences between K-line and short-term signals such as KDJ, divergences with trend indicators such as MACD, and divergences with funds.
Today we will talk about the common divergence with MCACD. I believe that if you understand this, you will also understand the others.
Top divergence generally indicates risk. Of course, it does not mean that divergence will definitely lead to a fall. It just means that the adjustment after divergence will be deeper than usual most of the time. So when you see this signal, you should reduce your position. If you usually reduce it by half, you should reduce more now. When the retracement after the top divergence signal meets the signal, you should add less when adding positions.
If the top divergence comes out, there may be a big correction later, so for altcoins, you have to consider not chasing more
Wait for the market to digest this wave of divergence, and the correction is our opportunity to enter the market again$BTC $ETH $SOL
