Sentences with phrase «histogram divergence»
The next two examples (above) show bearish MACD histogram divergence.
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If you're trading MACD divergence, you could avoid the histogram divergence and only trade MACD line divergence as it tends to be stronger.
Not exact matches
The difference (or divergence) between the MACD and Signal lines is shown in the «histogram».
Many traders also look for divergences between the price of the financial instrument, the MACD and signal lines and the histogram.
I'm using it to look for regular and hidden divergence on the histogram.
The Relative Strength Index (RSI) on the daily chart is moving sideways along the 70 technically overbought level, in bullish territory with a Moving Average Convergence Divergence indicator (MACD) that is flat on the signal line and falling on the histogram.
Am I right if for example, Divergence is when price is making higher highs while the histogram or MACD line are making lower highs or double tops?»
MACD divergence is, for example, when price is making lower lows while the histogram or MACD line is making higher lows or double bottoms.
• Foremost is the watching for divergences or a crossover of the center line of the histogram; the MACD illustrates buy opportunities above zero and sell opportunities below.
ex4 is a modified Moving Average Convergence Divergence oscillator with a nice visual display of histograms aligned below & above the 0.00 signal level to depict bearish / bullish trend respectively.
The Relative Strength Index (RSI) is bullish and hovering around the technically overbought level, but no where near extreme, with a Moving Average Convergence Divergence indicator (MACD) histogram moving back higher along with the signal line on the daily chart.
A popular MACD divergence strategy is used when the following basic trade setup occurs: The price makes a new high or low, but the MACD histogram does not make a corresponding new high or low.