$INDU - Chart Link- here's an example of MACD
divergence with the Dow Jones
you had a MACD divergence end of December, it looks tiny now but
that's because current move makes it look that way, if you take the
time back on the chart it looks more prominent.
anyway that divergence, at the time I discussed that it was too
far above zero and likely to only produce a minor pullback, not a
major top, and that's what it did, was more of a sideways
consolidation. The second MACD divergence where the second
peak had recycled close to zero -those are the MACD divergences
that produce big tops
that's one of the tricks I've learned with divergence, where is
it with respect to the zero level - it's one of those subjective
things you only see through 1000's of examples
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Update: DBA screamer - and MACD education
DBA screamer - and MACD education
Posted by matt on 18th of Apr 2024 at 09:59 am
$INDU - Chart Link- here's an example of MACD divergence with the Dow Jones
you had a MACD divergence end of December, it looks tiny now but that's because current move makes it look that way, if you take the time back on the chart it looks more prominent.
anyway that divergence, at the time I discussed that it was too far above zero and likely to only produce a minor pullback, not a major top, and that's what it did, was more of a sideways consolidation. The second MACD divergence where the second peak had recycled close to zero -those are the MACD divergences that produce big tops
that's one of the tricks I've learned with divergence, where is it with respect to the zero level - it's one of those subjective things you only see through 1000's of examples