What is MACD Oil Trading Divergence?
MACD Divergence Oil Trading is one of the oil trading strategy used by online crude oil traders to analyze oil chart crude oil price movement. MACD Oil Trading Divergence involves looking at a oil chart and one more crude oil technical indicator - MACD indicator. For our this crude oil trading divergence tutorials we shall use the MACD indicator - MACD Crude Oil Trading Divergence.
To spot this MACD oil divergence trading setup find two oil chart points at which crude oil 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 crude oil price & momentum.
MACD Oil Trading Divergence Example:
In the oil chart below we identify two crude oil trading chart points, chart point A and chart point B (swing highs)
Then using MACD technical indicator we check the highs made by the MACD oil technical technical indicator, these are highs which are direct below the Chart points marked A and B.
We then draw one line on the oil chart & another line on the MACD technical indicator.
MACD Oil Divergence Explanation - Bullish Oil Divergence MACD - Bearish Oil Divergence MACD - MACD Oil Divergence Guide
How to trade MACD oil divergence
In order to trade MACD oil divergence set-up we look for the following set-ups:
HH - Higher High - two highs but the last one is higher
LH - Lower High - two highs but the last one is lower
HL - Higher Low - 2 lows but the last one is higher
LL - Lower Low - two lows but the last one is lower
First let us look at the examples of these oil trading divergence trading terms
What is MACD Oil Divergence? - Crude Oil Trading MACD Divergence Definition - Crude Oil Trading MACD Divergence Tutorial
MACD Crude Oil Trading Divergence Definition - MACD Divergence Oil Tutorial - MACD Oil Trading Divergence Strategy PDF - MACD Divergence Oil Trading PDF
There are two different types of oil trading MACD divergence setups:
- MACD Classic Divergence
- MACD Hidden Divergence
