Commodities Trading MACD Divergence Cheat Sheet
MACD Commodity Trading Divergence is one of the commodity trading strategy used by online commodities traders to analyze commodity chart price movement. MACD Commodity Divergence involves looking at a commodity chart & one more commodities trading technical indicator - MACD indicator. For our this commodities trading divergence tutorials we shall use the MACD indicator - MACD Commodities Trading Divergence.
To spot this MACD commodity divergence trading setup find 2 chart points at which commodity price makes a new swing high or a new swing low but the MACD indicator does not do the same, thus indicating that there is a divergence between the commodity price & momentum.
MACD Commodity Divergence Example:
In the commodity chart below we spot two chart points, chart point A & chart point B (swing highs)
Then using MACD technical indicator we check the highs made by the MACD technical indicator, these are highs which are direct below the Chart points marked A & B.
We then draw one line on the commodity chart & another line on the MACD indicator.
MACD Commodity Divergence Explanation - Bullish Commodity Trading Divergence MACD - Bearish Commodity Trading Divergence MACD - MACD Commodity Trading Divergence Guide
How to trade MACD commodity divergence
In order to trade MACD commodity divergence set-up we look for the following set-ups:
HH - Higher High - 2 highs but the last one is higher
LH - Lower High - 2 highs but the last one is lower
HL - Higher Low - two lows but the last one is higher
LL - Lower Low - two lows but the last one is lower
First let us look at examples of these commodity trading divergence terms
MACD Divergence Definition - Commodities Trading MACD Divergence Cheat Sheet
MACD Commodities Trading Divergence Definition - MACD Divergence Commodity Trading Cheat Sheet - MACD Commodity Divergence Strategy PDF - MACD Divergence Commodity Trading Tutorial
There are two types of commodity trading MACD divergence setups:
- MACD Classic Divergence
- MACD Hidden Divergence
