How to spot bullish divergence on MACD Histogram #trading #forex #fyp

How to spot a bullish divergence on the MACD histogram? Step 1: Find bearish trend— lower highs, lower lows. Step 2: Compare the recent lower lows on the chart with higher lows on the MACD histogram. Make sure the histogram flips from negative to positive to negative again. Bullish divergence means the buyers are trying to resist the sellers and might take the control and push the price to the upside. Few examples: CAD/CHF daily chart at the end of the bearish trend, lower lows on the chart versus higher lows on the MACD histogram, flipping from negative to positive to negative. AUD/CAD lower lows on the chart, higher lows on the MACD histogram, again flipping from negative to positive to negative. GBP/CHF 4-hour chart as well, bearish trend, lower lows on the chart, higher lows on the MACD histogram, negative, positive, Negative.