What's MACD Forex Divergence? - Forex MACD Divergence Meaning
MACD Forex Divergence Trading is one of the forex trading strategy used by online forex traders to analyze forex chart price movement. MACD Forex Divergence involves looking at a forex chart & one more forex technical indicator - MACD indicator. For our this forex trading divergence tutorials we shall use the MACD indicator - MACD Forex Divergence.
To spot this MACD forex divergence trading set up find two chart points at which forex 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 price & momentum.
MACD Forex Divergence Example:
In the forex chart below we identify two FX chart points, chart point Marked A and chart point Marked B (swing highs)
Then using MACD indicator we check highs made by MACD forex trading technical indicator, these are highs that are directly below the Chart points marked A & B.
We then draw one line on the forex chart & another line on the MACD indicator.
MACD Forex Divergence Meaning - Bullish Divergence MACD - Bearish Divergence MACD - MACD Divergence Guide
How to trade MACD forex divergence
In order to trade MACD forex divergence trading setup we look for the following setups:
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 - 2 lows but the last one is lower
First let us look at examples of these forex trading divergence terms
What is MACD Forex Divergence? - Forex MACD Divergence Meaning - Forex MACD Divergence Cheat Sheet
MACD Forex Divergence Definition - MACD Divergence Forex Trading Cheat Sheet - MACD Forex Divergence Strategy Course - MACD Divergence Trading Tutorial
There are two types of forex trading MACD divergence setups:
- MACD Classic Divergence
- MACD Hidden Divergence
