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What is the correct way of drawing divergence lines on MACD

saivenkat

Member
Hi all

Enthused by the thread started by Sesshoumaru on Reverse Swing Trading Strategy, and the insight given by CFANFX (h**p://www.worldwide-invest.org/trading-systems-strategies/3963-req-reverse-swing-trading-strategy-2.html), i was looking at some videos in trading MACD divergences.. really interesting..

The point i would like to ask is, what do you think is the exact method of DRAWING THE DIVERGENCE LINES ON MACD INDICATOR?

Because, while in some videos they prefer drawing divergence lines on HISTOGRAM BARS OF MACD, and some recommend to use THE SIGNAL LINES?:eek:

Your opinions are very much appreciated.

Regards
Saivenkat:)
 
Both methods ( divergence on signal line and divergence on histogram ) are valid.
Both can give profitable setups and both can give losing setups.
 

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