shadowninja
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Hello. 
frontier2002
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What do you want to know about MACD divergence i can help with my experience?
i can recognize the positive divergence between the pice line and the macd line but i want to know the time i will buy or what is the buy signal as the divergence can last a long time..
frontier2002
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Please take note of this carefully and put it carefully right at the back of your head. There is no one can predict the exact time when the market will move and even the great traders ever with the like of George Soros cannot do it.
However you can reduce the ideal guessing time for to predict when it moves but this will not be exact. Use the stochastic to help you predict short-term fluctuation, this is because stochastic is moving faster than MACD. Usually in most case when stochastic is moving against MACD direction there will be somewhat flat movement. Until both is moving in the same direction usually it will break to a certain degree of the bollinger band line depending on the starting position of the market. For example if the market start from the bottom it may end up somewhere in the middle line of the bollinger band or if it starts from the middle it will be end up on the top.
This scenario is only explain if both macd and slow stochastic is moving up in the same direction.
MACD is famous for its lagging nature where usually the market will move ahead of its movement. Therefore most often the novice traders always want to use this indicator due to its strong reputation but very long to wait. Since stochastic is moving faster you need to watch out for it because it shows almost the real movement of the market. When both moving inline therefore breakout.
i hope you get what i meant.:cheesy:
