Trading MACD histogram divergence

[ssangha84]

I just started to look at MACD histogram divergences. I find it to be a pretty good indicator most of the time. What do you guys use as a confirmation to pull the trigger when you see divergence?

 

[graemenash]

Candlestick patters are a good method although you need to be sure that the divergence is occurring at a good s/r level otherwise it may be a false signal.

Another way to play it is to trade a break of the lowest point in between the two peaks of the divergence (or highest point in between the troughs if it's a bullish setup).

 

[Dentalfloss]

graemenash.please give us an example of break of lowest peak

 

[graemenash]

graemenash.please give us an example of break of lowest peak

try this...

 

[rathcoole_exile]

graeme, a beaut example, a man after my own heart.

"but what about all the "lost" pips from the reversal at high to the entry point that you missed ???"
I hear the newbies cry.

what about them ?? I say .....

and therein lies the secret to successful training that will fall on so many deaf ears .....

 

[Dentalfloss]

ok.so it is trade at the break of the neckline.after a divergence is seen.thanks