Vladimir RibakovOwner, Chief Trader at Home Trader Club (Former Traders Academy Club), Owner, Chief Trader at Home Trader Club (Former Traders Academy Club) · Owner, Chief Trader at Home Trader Club (Former Traders Academy Club)

How To Spot a Bullish Divergence On MACD Indicator #trading #macd #divergence #forexeducation

10 Jun 2024 · 1 min

Watch on YouTube

1:00

In this concise tutorial, Vladimir Ribakov of Home Trader Club explains how to identify bullish divergence using the MACD indicator. He outlines a two‑step process: first, locate a bearish trend characterized by a series of lower highs and lower lows on the price chart; second, compare the price lows to the MACD line, looking for higher lows on the indicator while the price makes lower lows. This divergence signals that buyers may be gaining strength, offering a potential buy opportunity. Ribakov illustrates the method with three live chart examples—a daily silver chart, a 4‑hour EUR/CHF chart, and a 1‑hour EUR/AUD chart—showing how the divergence forms and how the MACD crossing upward confirms the trade trigger.

Chapters

Hey guys, Vladimir here from Home Trader Club. How to spot a bullish divergence on the MACD indicator? Step 1, find a bearish trend. Bearish trend means sequence of lower highs, lower lows. Step 2, compare lower lows on the chart with higher lows on the indicator. Bullish divergence means buyers are trying to resist the sellers and might be trying to take the control and push the price to the upside. Here are a few examples how it looks like in real time. Silver daily chart, lower lows on the chart, higher lows on the MACD, bullish divergence, buy opportunity. Euro franc 4-hour chart, bearish trend, lower lows, lower highs. At the end of the trend, lower lows on the chart, higher lows on the MACD, bullish divergence, buy trigger, buy opportunity. Euro Aussie 1-hour chart, again bearish trend, lower lows on the chart, higher lows on the MACD, triggering when the bullish divergence complete and MACD makes a new low and cross to the upside, buy opportunity ahead of us.