MACD Divergence

Bladerunner

Guest
104 76
I would like to ask people's ideas and opinions on the use of MACD and MACD Divergence in trading.


Hi

Its very ok but its just an indicator, no need to pay for any fancy ones, standard one is just fine. Learn it inside out if you like the look of it.

A sharp shooter does not need to keep re-setting his or her sights, just aims off centre in a strong wind :)

A bad workman blames his tools.

Andy
 
  • Like
Reactions: nine

smallcap

Newbie
9 0
Thanks Bladerunner & Zeppo.
I have plenty of websites to look at - I was really after anyone's personal ideas and opinions
Thanks for replying.
 

dojispace

Junior member
14 0
I don't normally use macd divergence, I use stochastic divergence. When they occur, they are strong leading indicators.
 

rtsurvivor

Member
53 2
Hi Smallcap. I'm a big fan of the MACD. I use it as a qualifier for a lot of different price patterns. the pic below shows the EUR/USD daily as a good example of how the MACD could be used to catch a coming drop or end of an up trend around last June or so.

I have a couple of other indicators that are qualifiers for price patterns but again, the MACD ranks high on my list.




Good trading
RT... :clover:
 

mr_cassandra

Well-known member
349 36
I think divergence can be a useful tool as long as you understand the built-in flaw to all oscillators. They have all been time-tested to a generic 'best-fit' number setting and they 'diverge' if ""your"" index/stock has a move shorter or longer than the best-fit setting.
What does this mean to you? Let's say you apply a 12-26 macd to stock XYX and XYZ then proceeds into a 45 day ascent. At about 25 days they macd will begin to show you negative divergence and if you weren't aware of this limitation, you might begin reversing position on a stock that is going up another couple weeks.
 

jonboy123

Well-known member
400 3
can divergence happen with macd histogram and macd line?

eg histogram sloping down... and macd line going up...? is this divergence ?

stockcharts.com article i think suggest this, but they dont explicity say.
can anyone confirm please.

cheers.
 

ajay

Junior member
10 0
Dear Friends,

This is a small attempt from my side towards contributing to the common sense approach in indicator interpretation. Here is the ppt file that I zipped and attached.

Please correct me if I am wrong.

Happy practicing technicals

Ajaya
 

Attachments

Last edited:

jonboy123

Well-known member
400 3
Dear Friends,

This is a small attempt from my side towards contributing to the common sense approach in indicator interpretation.

Please correct me if I am wrong.

Happy practicing technicals

Ajaya
whats in the zip file? :confused:
 

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock