Trading MACD Divergence
MACD indicator is famous for its MACD Divergence trading method.
Divergence is found by comparing price shifts on the chart and MACD values. MACD Divergence phenomenon occur as a result of shifting forces on the Forex market. For example, while Sellers may seem to be dominating the market at the moment and price continues to trend down, there already might be signals for an overall weakening of Sellers power. This key warning moments can be observed with MACD indicator. What Forex traders would see is that despite price making new Lower Lows, MACD doesn't confirm that and instead registers a Higher Low, signaling that Sellers are running out of steam and a trend change is on its way.
Opposite will be true for Buyers.
MACD indicator is famous for its MACD Divergence trading method.
Divergence is found by comparing price shifts on the chart and MACD values. MACD Divergence phenomenon occur as a result of shifting forces on the Forex market. For example, while Sellers may seem to be dominating the market at the moment and price continues to trend down, there already might be signals for an overall weakening of Sellers power. This key warning moments can be observed with MACD indicator. What Forex traders would see is that despite price making new Lower Lows, MACD doesn't confirm that and instead registers a Higher Low, signaling that Sellers are running out of steam and a trend change is on its way.
Opposite will be true for Buyers.
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন