MACD Divergence

[Trade4_Freedom]

I am kind of confused on whether the MACD line or MACD histogram is used for the divergence indicator against the price.

Can someone shed some light on this?

Thanks,

 

[timsk]

Hi T4F,
How you use any indicator is entirely up to you. If you can use it to your advantage in an untypical way - good for you. Your broker won't try and claw back your profits because you were 'cheating' by using MACD in a way that no one else does!

Here's some good info on MACD and MACD Histo respectivey.
Lastly, here's a decent set of videos on the indicator - the last of which focuses on divergence if I remember correctly: MACD Part 1 (For parts 2 & 3, click on the 'Technical Analysis' link next to category.)

Once you've sifted through that lot - post your thoughts here and let us know how you are using MACD - or thinking of using it.
Tim.

 

[isatrader]

Elder did an small ebook on it a while back called Two Roads Diverged: Trading Divergences. Here's the link: Elder.com: Education for Intelligent Traders