Macd positive divergence stocks
MACD divergence is discussed in most trading books and frequently cited as the reason for trend reversals, or why a trend could reverse.In hindsight, divergence looks great; many examples can be Well, it is a momentum indicator. When a stock or index is rising, the 12 day EMA will be higher than the 26 day EMA and the MACD will be positive and above the zero line, or centerline. When a stock or index is falling, the 12 day EMA will be lower than the 26 day EMA and the MACD will be negative and below the zero line, or centerline. It results in divergence when the next price wave isn't as sharp, but in no way indicates a reversal. MACD divergence was present this whole day, yet the price dropped all day. If monitoring divergence, an entire day of profits on the downside would have been missed.