A typical Convergence Divergence is in play here. Stock is also in a Long term Lower Low Pattern formation. Could this Convergence Divergence indicate a breakout from the Lower Low Trendline? Or is the price going to go down further? Give your comments in the Comments Section below:
The stock had found a Resistance zone @ 602 during Aug 2021 and had started a Lower Low Pattern ever since. Eventually finding its Support Zone @ 360 during Mar 2023 after 1 Year and 7 Months. At this point notice that the Lower Low Pattern in the Price Action, however MACD slightly started showing a Higher Low formation. Hence the Convergence Divergence...
Watch how the stock was on a continuous Lower Low Patter and formed a Lower Low Trendline. Simultaneously, there was also a formation of Convergence Divergence indicating an upward move. Stock also broke out of the trendline with a strong green candle. While the MACD Cross indicated a good entry after the Convergence Divergence, the breakout from the Trendline...
Notice how the stock exactly revisited the most recent Swing High exactly after the Convergence Divergence. MACD Cross after the Convergence Divergence gave a good entry as it happened at a Higher High Higher Low Pattern indicating a good move upward. Eventually gave a 38% up move. Another MACD Cross is under play currently. Can it break the Resistance zone of...
📊 Introduction You might want to read more about the MACD indicator if you're seeking for a technical indicator that can assist you in spotting market trends and momentum. Moving average convergence/divergence, or MACD, is one of the most well-known and often applied technical analysis indicators. We will define the MACD indicator, describe its operation, and...
How to Use the MACD Indicator? 🔶 What’s MACD? That is an abbreviation for Moving Average Convergence Divergence. This technical indicator is a tool for identifying moving averages that indicate a new trend, whether bullish or bearish. After all, finding a trend is a key priority in trading because that’s where the greatest money...
The MACD indicator consists of three parts: the MACD line, the signal line, and the histogram. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a 9-period EMA of the MACD line, and the histogram represents the difference between the MACD line and the signal line. Let's break...
How can we tell whether a downturn is just a normal part of a solid bull market, or the beginning of a major downdraft? We need to have a way to identify when long-term trends are changing. One way to guard against being caught on the opposite side of a trend is to apply technical indicators that can isolate major trend shifts and reduce psychological biases....
Hello everyone, as we all know the market action discounts everything :) _________________________________Make sure to Like and Follow if you like the idea_________________________________ In this video, I am gonna explain what is the MACD and how to use it and how to identify buy and sell signals using this indicator. So what is the MACD, The MACD is a...
MACD – What it is The Moving Average Convergence Divergence (MACD) is the momentum indicator that shows the relationship between two different moving averages: 1. The 12 period exponential moving average – On Tradingview it is the Fast Length. 2. The 26 periods exponential moving average –On Tradingview it is the Slow Length. The MACD line is calculated by...