we are diving deep into the most powerful signal generated by the MACD Indicator: Divergence. Divergence is often the earliest warning sign that a Trend Reversal is imminent, sometimes occurring before the price even shows a major change.
đŻ Finding Entry Points with Divergence (3 Steps)
âIdentify: Compare the Price Lows/Highs with the MACD Lows/Highs to spot the opposing movement (Divergence).
âConfirm: Do not trade immediately upon spotting Divergence. Wait for confirmation, such as the MACD crossing its Signal Line (Crossover) or the price breaking a key Trend Line.
âManage Risk: If entering a Long trade based on Bullish Divergence, place your Stop-Loss (SL) just below the Divergence's Lowest Point (the Original LL).
âCrucial Tip: Divergence tends to be more reliable and powerful when identified on Higher Timeframes like the Daily (1D) or 4-Hour (4H) charts. Avoid relying solely on 15-minute or 1-hour divergences.
âQuestion: What was the biggest profit you ever made using a MACD Divergence signal? Tell us which Coin and which Timeframe it was on in the comments!
#MACDDivergence #ReversalStrategy #techinicalanalysis #CryptoTrading. $BTC
BTCUSDTPerp69,641.7+0.93%
XRPUSDTPerp1.461+3.30%
BNBUSDTPerp633.98+3.28%