One chart. One year of BTC price action. Six automatically detected divergences — every single one followed by a significant move. That's what you're looking at when you open the NAMI momentum indicator on a weekly Bitcoin chart. If you've been searching for a divergence trading guide that uses real examples instead of textbook theory, or wondering how to spot divergences on crypto charts without staring at screens all day, this is the walkthrough you need.
In this guide, I'll walk you through exactly how to read the NAMI indicator using a real BTC/USD weekly chart from late 2024 through late 2025. No hypothetical setups. No cherry-picked examples. Just the actual chart showing how NAMI's momentum waves and automated divergence detection captured every major swing in Bitcoin's move from $65,000 to $126,000 — and the corrections along the way.
Whether you're new to NAMI, evaluating it as a Market Cipher alternative, or looking for the best momentum indicator for TradingView, this walkthrough shows you exactly what the indicator displays, what each component means, and how traders use it to identify high-probability reversals.
Note: For this walkthrough, NAMI's momentum waves and divergence detection have been isolated — the other composite components (Money Flow Index, Stochastic/RSI crossover, True VWAP oscillator, and full temperature ribbon coloring) have been toggled off to keep the chart clean and focused on what we're teaching here. In normal use, all components run together in the same pane, giving you a complete momentum picture at a glance. We'll cover each of those components in future guides.
NAMI Momentum Indicator on TradingView: What You're Looking At
The screenshot shows a BTC/USD weekly chart on Bitstamp with NAMI's momentum waves running in a separate pane below the candlestick chart. Here's what each element is:
The Momentum Waves (the large oscillating gray shape): This is NAMI's primary component — a proprietary momentum oscillator that plots price action as sharp, reactive waves. When Bitcoin's price pushes up, the wave rises. When price drops, the wave falls. Unlike smoothed oscillators like WaveTrend (used in Market Cipher B), NAMI's waves have sharp peaks and troughs that correspond precisely to actual price tops and bottoms on the candle chart above.
The Temperature Ribbon (the gradient fill between the waves): The gray-shaded area between the momentum lines is the Stochastic Temperature Ribbon. On a color chart, this gradient shifts from deep red (oversold/cold) through orange and yellow to green (overbought/hot). It gives you an instant visual read on where momentum sits within its range — no numbers to interpret, just color.
The Divergence Labels (the colored badges): The red and green labels — marked "Bear," "H Bear," "Bull," and "H Bull" — are NAMI's automatic divergence detection system. The connecting lines between peaks or troughs show exactly where the divergence formed. These are not drawn manually. NAMI detects and labels them in real time, with alert conditions built in.
The Zero Line: The horizontal center line around the 0 level. Momentum above zero indicates bullish pressure; below zero indicates bearish pressure. Crossings of the zero line often signal trend shifts.
Divergence Trading Explained: The Four Types NAMI Auto-Detects
Before walking through the chart, let's clarify what each divergence type means. Divergence trading is one of the most reliable reversal signals in technical analysis — and one of the most searched-for strategies among crypto traders. NAMI auto-detects all four types, so you don't need to find them manually like you would on Market Cipher B or VuManChu:
Regular Bullish ("Bull" — green label): Price makes a lower low, but NAMI's momentum makes a higher low. This means selling pressure is weakening even though price is still dropping. It often signals a bottom is forming. This is the classic "buy the dip" divergence.
Hidden Bullish ("H Bull" — green label): Price makes a higher low, but NAMI's momentum makes a lower low. This occurs during an uptrend and signals that the trend is likely to continue upward despite a temporary pullback. Think of it as "the dip within the trend."
Regular Bearish ("Bear" — red label): Price makes a higher high, but NAMI's momentum makes a lower high. Buying pressure is weakening even though price keeps climbing. It often signals a top is forming. This is the "sell the rally" divergence.
Hidden Bearish ("H Bear" — red label): Price makes a lower high, but NAMI's momentum makes a higher high. This occurs during a downtrend and signals continuation — the bounce is temporary and the downtrend is likely to resume.
How to Spot Divergences on BTC: Every Major 2025 Move Captured
Now let's walk through what NAMI showed on this BTC/USD weekly chart, left to right. Every divergence labeled on the chart fired before the corresponding price move — giving traders time to position.
1. Hidden Bullish Divergence — Late December 2024 (~$65,000–$70,000 zone)
On the far left of the chart, NAMI labels an "H Bull" (hidden bullish divergence) near the -40 level on the oscillator. At this point, Bitcoin was in the $65,000–$70,000 range after a pullback.
What it told traders: Price had made a higher low (the uptrend was intact), but NAMI's momentum briefly dipped lower. This hidden bullish divergence signaled that the pullback was a buying opportunity within a larger uptrend — not the start of a breakdown.
What happened next: Bitcoin rallied from the low $70,000s through $90,000 and above $100,000 over the following months. The hidden bullish divergence correctly identified this as a continuation setup, not a reversal.
2. Regular Bearish Divergence — Late January/February 2025 (~$100,000+)
As Bitcoin pushed above $100,000 for the first time, NAMI labeled a "Bear" (regular bearish divergence) at roughly the +60 level. The red connecting line extends to the right, linking this peak with the next momentum high.
What it told traders: Price was making new highs, but NAMI's momentum was making lower highs. The buying pressure driving BTC above $100K was weakening. This is a classic warning that a top is forming.
What happened next: Bitcoin pulled back from the $104,000–$108,000 area down to the mid-$70,000s — a roughly 30% correction. The regular bearish divergence gave traders a signal to take profits or reduce exposure before the drop.
3. Regular Bullish Divergence — Late March/April 2025 (~$75,000–$80,000)
After the correction, NAMI labeled a "Bull" (regular bullish divergence) deep in oversold territory, near the -80 to -90 level on the oscillator. The green connecting line links the two momentum troughs.
What it told traders: Bitcoin's price had made a lower low (dropping into the mid-$70,000s), but NAMI's momentum was making a higher low. Selling pressure was exhausting. A bottom was forming.
What happened next: This was the springboard for Bitcoin's rally from the mid-$70,000s all the way to $126,000 — the largest move on the entire chart. The regular bullish divergence at -80/-90 on the oscillator marked the exact bottom of the correction. Traders who recognized this divergence had a front-row seat to a 60%+ rally.
4. Hidden Bearish Divergence — May 2025 (~$108,000–$112,000)
As Bitcoin recovered and approached previous highs, NAMI labeled an "H Bear" (hidden bearish divergence) near the +90 level — close to the top of the oscillator's range. The red line connects back to the earlier bearish divergence peak.
What it told traders: Price was making a lower high compared to the January peak, but NAMI's momentum was making a higher high. In a developing downtrend or range, this hidden bearish divergence warns that the bounce is running out of steam and another leg down is possible.
What happened next: Bitcoin consolidated and pulled back briefly before eventually pushing to new highs. This divergence correctly flagged short-term resistance, giving traders a heads-up to manage risk — even though the longer-term trend eventually broke higher.
5. Regular Bearish Divergence — July 2025 (~$120,000+)
As Bitcoin approached the $120,000 level, NAMI fired another "Bear" (regular bearish divergence) at roughly the +70 level. The red connecting line shows momentum making a clear lower high while price made a higher high.
What it told traders: Same pattern as the February divergence — price pushing new highs with weakening momentum behind it. The rally was running on fumes.
What happened next: Bitcoin pulled back from the $120,000+ zone, consolidating and correcting before eventually pushing to the $126,272 high. Traders using this signal could tighten stops or take partial profits near the local top.
6. Regular Bearish Divergence — Late October 2025 (~$100,000–$104,000)
On the right side of the chart, NAMI labels another "Bear" (regular bearish divergence) near the +60 level. Once again, price is pushing higher while momentum is printing lower.
What it told traders: The momentum behind the current push is weaker than the previous rally. Caution warranted — a correction or consolidation phase is likely.
What happened next: Bitcoin was in the process of pulling back from the $100,000+ level at the time of this chart capture, confirming the divergence signal.
Automated Divergence Indicator vs. Manual Detection: Why It Matters for Crypto Traders
You might look at this chart and think: "I could have spotted those divergences manually." Maybe. On a weekly chart with six clean signals over a year, it's possible to identify them visually.
But consider the reality of how most traders actually trade:
You're watching multiple timeframes. If you're monitoring the weekly, daily, 4-hour, and 1-hour charts on BTC alone, that's four charts to scan for divergences. Add ETH, SOL, or a few forex pairs and you're scanning 12-20 charts. Manually spotting divergences across all of them is impractical.
Smoothed oscillators hide divergences. If your momentum indicator uses WaveTrend (like Market Cipher B and VuManChu), the rounded peaks and troughs make it genuinely difficult to determine the exact pivot point. Is that a lower high on the oscillator, or is the wave just curving? NAMI's sharp waves eliminate that ambiguity — the peaks and troughs are precise.
Alerts let you walk away. NAMI's divergence detection includes alert conditions for all four types. You can set a notification on the weekly BTC chart and go about your day. When a bearish divergence forms at a momentum peak, your phone buzzes. You don't need to be staring at the screen.
Labels remove subjectivity. Every trader who loads NAMI on the same chart sees the same divergence labels. There's no debate about whether it's "really" a divergence. The indicator applies consistent rules and marks it — or it doesn't. That consistency is valuable, especially under the emotional pressure of watching a trade develop.
How to Read a Momentum Oscillator: Using Wave Depth to Gauge Severity
Beyond divergences, the depth and height of NAMI's momentum waves themselves carry information.
Look at the regular bullish divergence in March/April 2025. The momentum wave bottomed near -80 to -90 — deep in oversold territory. That depth told traders two things: first, the selling pressure was extreme (a capitulation-style move), and second, the rubber band was stretched about as far as it could go. When momentum is that extended, a snap-back is high-probability.
Compare that to the smaller dips throughout the summer months, where momentum only dropped to -20 or -30. Those shallower dips indicated normal pullbacks within an uptrend — not capitulation events. The depth of the wave helps you gauge the severity of the move and calibrate your response.
On the upside, the momentum peaks reaching +80 to +100 indicated extreme buying pressure — often the zone where bearish divergences begin to form. When you see a momentum peak at +90 accompanied by a "Bear" or "H Bear" label, that's a double warning: overbought conditions plus weakening momentum.
Divergence Trading Strategy: A Simple Framework for Crypto Using NAMI
Based on what this chart shows, here's a straightforward framework for using NAMI's divergence signals on the weekly timeframe:
Step 1: Identify the trend. Are the momentum waves generally making higher highs and higher lows (uptrend), or lower highs and lower lows (downtrend)? On this chart, the broad trend from late 2024 through late 2025 was bullish — momentum consistently pushed above zero with higher peaks.
Step 2: Watch for divergences that align with the trend. Hidden bullish divergences in an uptrend (like the "H Bull" in December 2024) confirm that dips are buying opportunities. Regular bearish divergences at momentum peaks (like the "Bear" signals in February, July, and October) warn you to take profits or tighten stops — not necessarily to short, but to protect gains.
Step 3: Use momentum depth as a severity gauge. A regular bullish divergence at -80 (like March/April 2025) is a much stronger signal than one at -20. The deeper the momentum trough, the more significant the potential reversal. Same on the upside — bearish divergences at +90 carry more weight than those at +40.
Step 4: Set alerts and wait. NAMI's alert conditions let you set notifications for any divergence type on any timeframe and any asset. You don't need to manually scan charts. Let the indicator do the detection work and alert you when a setup forms.
Step 5: Confirm with structure. Divergences are high-probability signals, but they're not guaranteed trades. Combine NAMI's momentum divergences with structural analysis — support/resistance levels, order blocks, fair value gaps — for the highest-conviction setups. If you use SMC concepts, NAMI's companion indicator SMC PRO provides volumetric order blocks, breaker blocks, and FVG tracking on the same chart.
Beyond Momentum Waves: NAMI's Full Composite Indicator Suite for TradingView
As mentioned at the top, we isolated the momentum waves and divergence detection for this walkthrough. In normal use, NAMI displays several additional components simultaneously in the same pane:
Money Flow Index (MFI): An advanced, volume-based oscillator that shows real-time buying and selling pressure. It oscillates between green (buying) and red (selling) around the zero line. On lower timeframes, the MFI provides an independent confirmation layer — when momentum diverges but money flow confirms, the signal strengthens significantly.
True VWAP Oscillator: Shows how far price has deviated from the Volume Weighted Average Price, oscillating around zero with dynamic color changes (cyan above, orange below). This tells you at a glance whether price is above or below institutional fair value.
Stochastic and RSI Crossover: A bounded oscillator within the NAMI pane that shows stochastic (green/red) and RSI (yellow) interactions. When the stochastic crosses above RSI, it's bullish. When it crosses below, bearish. Touching the upper boundary signals overbought; touching the lower boundary signals oversold.
Buy/Sell Signal Dots: Red dots appear at momentum wave peaks (potential sell zones) and green dots at troughs (potential buy zones). These are visible on the chart as small markers at the wave tips.
All of these components work together in a single pane — giving you momentum, volume, deviation from fair value, and divergence detection without cluttering your chart with multiple indicators.
NAMI vs. Market Cipher B: Why Traders Are Switching Momentum Indicators
If you're currently using Market Cipher B or its free clone VuManChu Cipher B, the screenshot above puts the difference on full display. This is the same BTC/USD weekly chart with NAMI running in the middle pane and Market Cipher B running below it. Look at the difference in how each momentum oscillator handles the same price action.
If you've ever searched for how to read Market Cipher B divergences or struggled to identify Market Cipher divergence signals on those smoothed WaveTrend waves, this comparison explains why. Here's what you're seeing:
Signal Speed. Market Cipher B's core is the WaveTrend algorithm — a heavily smoothed oscillator that was open-sourced years ago by LazyBear. That smoothing produces clean, rounded waves, but it also means momentum peaks and troughs print after price has already turned. NAMI's proprietary algorithm captures those same reversals with sharp, reactive waves that land 60-80% faster in side-by-side testing. The six divergences on this chart? On a WaveTrend-based oscillator, several of them would have been blurred by the rounding — harder to spot, later to confirm.
Automated Divergence Detection. This is the biggest practical difference. Market Cipher B does not auto-detect divergences. If you're using MC-B, you need to visually identify every divergence yourself on those smoothed WaveTrend waves — squinting at rounded peaks wondering if that's really a lower high. NAMI labels all four types automatically with connecting lines and alert conditions. The "Bear," "H Bear," "Bull," and "H Bull" labels you see on this chart? Market Cipher B simply doesn't produce them. You're on your own.
Divergence Alerts. Because NAMI auto-detects divergences, you can set alerts for them. Set a bullish divergence alert on the weekly BTC chart and your phone buzzes when the setup forms — whether you're at your desk or not. Market Cipher B has alerts for Green Dots and momentum crossings, but not for divergences specifically. If divergences are your primary signal, that's a critical gap.
What Market Cipher Includes That NAMI Doesn't. Market Cipher is a suite of four indicators (A, B, SR, DBSI), while NAMI's momentum oscillator is one component of a broader suite. Market Cipher A's EMA ribbon and DBSI's 36-indicator momentum scoring don't have direct equivalents in NAMI. If your strategy relies heavily on Market Cipher A's trend ribbons or DBSI's candle-by-candle scoring, those features would need to be replaced separately.
What NAMI Includes That Market Cipher Doesn't. NAMI's suite includes SMC PRO — a volumetric order block indicator with breaker block detection and fair value gap tracking. Market Cipher has zero Smart Money Concepts tooling at any price. For traders who use ICT or SMC frameworks alongside momentum analysis, this is the deciding factor. *(Deep dive: Best Smart Money Concept Indicator for TradingView.)*
Pricing. Both NAMI and Market Cipher offer a $1,500 lifetime option. But Market Cipher also sells a $600/year subscription — meaning if you go annual, you'll pay more than NAMI's one-time price within three years. NAMI has no recurring charges. You own it permanently.
For a full feature-by-feature breakdown, see our Market Cipher Alternative: Why Traders Are Making the Switch comparison. For an honest assessment of where Market Cipher still excels (community, education, brand trust), see our Market Cipher Review 2026.
Getting Started with the Best Momentum Indicator for TradingView
The NAMI Indicator Suite is available as a one-time purchase of $1,500 — no monthly subscriptions, no annual renewals. The suite includes NAMI (the composite momentum oscillator covered in this guide), SMC PRO (volumetric order blocks, breaker blocks, and fair value gaps), plus additional proprietary indicators and VIP Discord access.
After purchase, you receive access via TradingView invite. Add NAMI to any chart, on any asset, on any timeframe. Set your divergence alerts and start identifying the setups that match your methodology.
If you're coming from Market Cipher B or VuManChu, the transition is straightforward — the concepts are the same (momentum, divergences, money flow), but the execution is faster and the automation is deeper. (See our Market Cipher Alternative comparison for a detailed breakdown.)
Frequently Asked Questions
What timeframe does NAMI work best on?
NAMI works on all timeframes, but the signal quality varies. Weekly and daily charts produce fewer, higher-quality divergence signals — ideal for swing and position traders. The 4-hour and 1-hour charts provide more frequent signals for day trading. The divergences shown in this guide are from a weekly chart, where each signal corresponded to a major multi-week move.
Does NAMI repaint its divergence signals?
NAMI's divergence labels appear when the divergence pattern is confirmed. Like all indicators that detect patterns in real-time, the signal is based on the data available at the time of detection. The labels shown in this chart walkthrough represent the signals as they appeared to traders at the time.
Can I use NAMI alongside other indicators?
Yes. NAMI runs in its own pane below the price chart, leaving the main chart free for overlays like SMC PRO (order blocks, breaker blocks, FVGs), moving averages, or any other tools in your workflow. Many traders use NAMI for momentum and divergence timing alongside SMC PRO for structural levels.
What assets does NAMI work on?
Any asset on TradingView — cryptocurrency, forex, stocks, commodities, and indices. The divergence principles work universally because they measure the relationship between price and momentum, which applies to all traded markets.
How do I set up divergence alerts?
Right-click on the NAMI indicator in TradingView and select "Add Alert." NAMI includes alert conditions for all four divergence types: regular bullish, hidden bullish, regular bearish, and hidden bearish. Set the alert for any combination and TradingView will notify you via app, email, or webhook when a divergence forms.
NAMI Trading offers premium TradingView indicators built by traders, for traders. The NAMI Indicator Suite is available as a one-time purchase at namitrading.com.
Risk Disclaimer: Trading cryptocurrency, forex, and other financial instruments involves substantial risk of loss and is not suitable for all investors. Past performance of any indicator is not indicative of future results. No indicator guarantees profitable trades. The chart analysis in this article is educational and should not be interpreted as financial advice. Always use proper risk management and never trade with money you can't afford to lose.