MACD-Divergence



MACD Divergence Interpretation:

The MACD divergence indicates a slowdown of the current trend and a probability of a reversal.

If a bullish divergence is detected this indicator returns +1 (green histogram). If a bearish divergence is detected, the indicator returns -1 on the (red histogram). If no divergence is detected, the indicator returns to 0.

Tip:

If looking at a price chart, a MACD chart and a MACD divergence chart, make sure that you have set the parameters of the MACD and MACD divergence to the same level (example 12, 26, 9).

MACD Calculation

This indicator detects bullish and bearish divergences between price and the MACD. A bullish divergence occurs when the price makes new lows while the indicator starts to climb upward.

A bearish divergence occurs when the price makes new highs while the indicator starts to go lower.




Return from MACD-Divergence to Using Indicators

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