macd divergence

MACD (Moving Average Convergence Divergence) divergence is a powerful. Technical analysis tool used by traders to identify potential reversals in price momentum. It occurs when the price of an asset moves in the opposite direction of the MACD indicator. Signaling a possible shift in trend. Traders look for instances where the price forms higher highs or lower lows while the MACD indicator forms lower highs or higher lows. Indicating divergence between price action and momentum. MACD divergence can provide valuable insights into market sentiment and help traders anticipate trend reversals or continuations. By understanding how to recognize and interpret patterns, traders can enhance their trading strategies and make more informed decisions in financial markets.