Technical Analysis Indicator MACD part two

part two of the three part series on MACD

• Category

  Howto & Style

[bbp1aya]

Excellent video. Question though: Do you *only* compare lows for bullish divergences (or highs for bearish divergences) or can you compare highs OR lows for bullish/bearish??

[markofibo]

excellent question. For a good learning experience I suggest

that you look into reverse divergence for an answer and post it here.

all the best

Marko

[bbp1aya]

Aha, got it.  Reverse divergence is actually a continuation signal instead of a reversal signal. It's when the Indicator shows lower LOWS (or higher HIGHS) as opposed to higher lows (or lower highs). In that case, you go by the direction of the price action instead, NOT the direction of the indicator ("reverse" divergence).

I think a good way to remember is this: If you're comparing lows and they diverge, it's a bullish signal. If you're comparing highs that diverge, it's a bearish signal.

[markofibo]

gotta love those 'aha" moments ! :-)

[Cameosis]

lol @ "this is pretty exciting stuff" in the Clear Eyes monotonous voice.

Anyways thanks for sharing, I'm checking some charts as I listen

[rosspage]

great job!

[pandamai881]

So how can you test technical analysis

[capetownct]

Excellent videos

[Dave MacKay]

This one is excellent

[Dode200005]

Thanks a lot.