Registered User
Joined: 1/19/2008
Posts: 23
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Hello,
I have a question regarding comparing divergences between peaks in price and peaks in MACD: when MACD is plotted with a histogram, is the proper technique to use the peaks of the histogram or the peaks of the line representing the difference of the moving averages as the point of comparison to price?
Thanking you in advance.
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Registered User
Joined: 1/19/2008
Posts: 23
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After doing some research, I see that either the histogram or the MACD lines can be used. From what I've read, the histogram was added to MACD to make crossovers easier to see, so prior to the inclusion of the histogram, the MACD line itself was used for spotting divergences with price. I also found out that some traders, look at divergences between the histogram and MACD, in order to anticipate a turn in the MACD line, while others, like Dr. Elder, began to use the histogram to spot divergences with price.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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The trainers can't give setting, interpretation or investment advice. I'm happy to read you were able to locate such advice on your own. You may wish to review the following:
Understanding MACD
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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