Convergence in crypto trading: explained

In crypto trading, convergence refers to a situation in which two or more indicators or signals are moving in the same direction, suggesting that a trend is likely to continue or strengthen.

For example, if a trader sees that the price of a cryptocurrency is increasing and that the moving average of the price is also increasing, this would be a convergence of the two signals, indicating that the uptrend is likely to continue. Similarly, if a trader sees that the price of a cryptocurrency is decreasing and that the volume of trading is also decreasing, this would be a convergence of the two signals, suggesting that the downtrend is likely to continue.

Convergence is often used in technical analysis to confirm trends and to identify potential buying or selling opportunities. By looking for convergence between different indicators or signals, traders can gain a better understanding of the market and make more informed trading decisions.