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MACD Divergence Explained.

When price and momentum disagree. How regular and hidden MACD divergence work, how to confirm them with structure, and why divergence alone is not an entry.

What divergence is.

  • Bearish divergence: price makes a higher high while the MACD histogram or line makes a lower high.
  • Bullish divergence: price makes a lower low while MACD makes a higher low.
  • Hidden divergence points to trend continuation rather than reversal.

How to confirm it.

  • Wait for a break of the most recent swing level before entering.
  • Prefer divergence that forms at a key support or resistance zone.
  • Higher timeframes give fewer but more reliable signals.

Common mistakes.

Divergence can persist for many swings in a strong trend. Treating it as an instant reversal signal is the most common way to fight a trend and hit a daily loss limit.

FAQ

Häufige Fragen.

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