What is a depth chart?

It is agraphical representation of orders for a specific asset at various prices. A depth chart helps traders understand a trading pair’s overall supply and demand. Its graphical format offers easily recognizable cues as to the condition of the market. However, depth charts are useful in other fields, such as sports.

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.

What is a bearish channel?

A bearish channel is formed by two parallel bearish lines. The price progresses between these two parallel lines; the upper line is called the "resistance line"; the lower line is called the "support line". Each of these lines must have been touched at least twice to validate the pattern.

What is a bullish divergence chart?

A price chart showcasing bullish divergence is characterized by the formation of progressively lower lows by the price candles when the signal line of the oscillator forms progressively higher lows.