Macd divergence failing

#1
i have seen certain charts where macd divergence fails.

infact divergence seem to fail too often to make it a tradeable pattern

i m new to ta so seniors please help out
 

anil_s_trivedi

Well-Known Member
#3
i have seen certain charts where macd divergence fails.

infact divergence seem to fail too often to make it a tradeable pattern

i m new to ta so seniors please help out
Dear amit,

Divergence is nothing but waning momentum while price still moving in same direction.

Its the same process, where car travelling on a road at 60 Km/hr, and small turning comes, what car driver does, is slow down speed and make a turn. But car is still in motion and travelling in same direction.

similarly, until momentum divergence is confirmed with price action weakness, its useless to initiate position.
 
#4
Need afl to detect MACD divergence. When Close of Price is higher than previous and MACD value is lower in last 26 bars it should show on chart
or should come in Exploration.
Same for RSI . When Close of Price is higher than previous Close and RSI value is lower in last 14 bars it should show on chart or should
come in Exploration. Also for RSI if previous RSI is above 70 and next in 14 bars if RSI is below 70 and price close is higher it should
come in Exploration.
Thanks
God Bless You
 
#5
Sorry to butt in. But people need to understand the meaning of a trend and the usage of sl wrt any indicator they use. MACD reverse signal does not give you the signal to short at the outset. The trick is to compare the lows of consecutive sell signals or buy signals to initiate a trade based on MACD.
 
#7
One needs to be aware of all the nuances of the indicator being used intricately. The big money (operators) know what goes on in the mind of the retailer. They create these divergences (at times at will to suck the common man into the wrong trade)
 

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