| jefflink62 |
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Gold User, Member, TeleChart
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| Registered User |
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| Unsure |
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| Tuesday, October 3, 2006 |
| Monday, December 7, 2009 10:33:55 PM |
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When the stock price hits a new high compared to a previous high and the you compare the histograms of the two MACD of each of those highs. In the case of a bullish divergence, the prior high of the stock price and corresponding MACD histogram is a lower MACD high than the current one. Sorry it is easier to show with an example.
A good example would be to look at the weekly STX chart with MACD. The first part of 2006 versus the first part of 07. The MACD has traced a lower higher in 07 vs 06. That would be a bullish divergence. As the stock price is near it's 06 high or greater.
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Is there a way to use EZ Scan to screen stocks and indexes for bullish and bearish divergences with MACD?
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