Welcome to the Crypto Trading Group podcast, your go-to weekly guide on how to become a successful cryptotrader! Each week, we dive into the latest trends in the crypto market, providing in-depth analysis and updates to help you stay ahead. Whether you're just starting out or looking to sharpen your trading skills, this podcast is packed with valuable insights to boost your crypto journey.

Be sure to follow us on X at @CryptoRebel4 for even more tips and updates throughout the week.

Disclaimer: This podcast is for educational purposes only. Trading cryptocurrencies comes with risk, and any trades you make are done at your own risk. Always do your own research before making any financial decisions.

Now, let’s get into lesson 11 of "how to become a cryptotrader!"

In this podcast episode, we’ll discuss divergences in the world of trading. Divergences occur when the price of an asset and a momentum indicator, such as the Relative Strength Index (RSI), send conflicting signals.

• The RSI is an indicator that shows whether an asset is overbought or oversold.
• It measures the momentum of price changes and ranges between 0 and 100.
• An RSI value below 30 suggests that an asset is oversold, while a value above 70 suggests it is overbought.

Typically, the price and the RSI move in the same direction. When this is not the case, and a discrepancy arises, we call it a divergence. These divergences can be bullish or bearish and are used to identify potential market reversal points.

We’ll cover different types of divergences, such as strong, medium, and weak bullish/bearish divergences, as well as hidden bullish/bearish divergences. Additionally, we’ll look at examples of how you can use divergences to spot trading opportunities.