CMF Divergence
Last updated
Last updated
βIf 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.
βIn order to easily obtain CMF Divergence detections, you can create Alerts or Custom Signals through the Coinlegs system, and start autotrading bots on LegsBot by using the alerts you create.