MACD Divergence

Trade4_Freedom

Junior member
15 0
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

Legendary member
7,311 2,099
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.
 
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