What is bullish divergence?

Bullish divergence is the opposite of bearish divergence. Bullish divergence occurs when the price is creating lower lows, but the momentum indicator is showing higher lows, indicating a weakening of the trend and a potential reversal. What Is Bullish Hidden Divergence? Again, it is the opposite of hidden bearish divergence.

What is bearish divergence?

A price chart showing bearish divergence is characterized by the formation of progressively higher highs by the price candles in the presence of progressively lower peaks formed by the oscillator’s signal line. This setup can occur in the form of a bearish divergence RSI signal or a bearish divergence MACD signal.

How can I identify bullish and bearish divergences in a risk-free enviornment?

You can practise identifying bullish and bearish divergences in a risk-free enviornment by using an IG demo account. This simulated market enviornment gives you the full functionality of our platform, including all of our technical indicators, but you won’t have to put any real capital at risk or be obliged to fund a live account.

What is a bullish divergence in Litecoin?

In the case of a bullish divergence, the signal occurs when the indicator makes higher lows (becoming less bearish) while the price action itself is establishing lower lows. Here, you can see Litecoin on the daily chart from back in December of 2019.