Coinlegs Academy
  • Coinlegs Academy
  • 🌡FUNDAMENTALS
    • MACD
    • Ichimoku
    • Relative Strength Index (RSI)
    • Commodity Channel Index (CCI)
    • Stochastic
    • Moving Average (MA)
      • SMA
      • EMA
      • WMA
      • SMMA
    • EMA Crossovers
    • Confluence of EMAs
    • Golden Cross/Death Cross
  • 🐰ADVANCES
    • TD Sequential
    • Super Trend
    • Bollinger Bands
    • Trend Reversal
    • Support/Resistance
    • On-Balance Volume (OBV)
    • Chaikin Money Flow (CMF)
    • Semarc
  • πŸ¦‹PATTERNS
    • Trend Line
    • Failure Swing
    • Double Bottom / DoubleTop
    • Triangle
    • Wedge
    • AB=CD Pattern
    • Elliot Waves
  • 🐒DIVERGENCES
    • RSI Divergence
    • OBV Divergence
    • CMF Divergence
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  1. DIVERGENCES

CMF Divergence

PreviousOBV Divergence

Last updated 2 years ago

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​If the price movement and the CMF movement do not progress in harmony, "divergence" occurs. Investors can take advantage of this mismatch to predict the direction of the trade. In other words, if the CMF movement is decreasing while the price is rising, or if the CMF movement is increasing while the price is decreasing, a mismatch is detected. Mismatches between the CMF and price movements are interpreted as the trend will soon change in the direction of the CMF movement. If the price is decreasing while the CMF is increasing, the prices are expected to increase; if the price is increasing while the CMF is decreasing, the prices are expected to decrease. Investors can take advantage of this mismatch to predict the direction of the trade.

​In order to easily obtain CMF Divergence detections, you can create or through the Coinlegs system, and start autotrading bots on by using the alerts you create.

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