Is this a bearish divergence?

Hi guys, please advise, am i reading the MACD right? is this a bearish divergence?


Bearish divergence of MACD v’s price - yes I would say so.
Reversal? - Not yet confirmed.
Opportunity to go short? - Gone.
Opportunity to go long? - Gone.

Hi, can you elaborate more on the opportunity to go short / long?

HAHA LMFAO. that cute ans

What pairs is this may I know?

EUR/USD H1 chart

Not helpful anymore I guess, but yep, that’s a divergence.

Generally, every osc. you get, you would expect higher highs to correspond to higher highs on the chart. New peaks on one, lower lows on the other = divergence.

By the way, it’d be more clear if you went 1 chart lower.


Well, trading is simple to understand - enter at the right time in the right direction.

MACD negative divergence is used (though not by me) to identify a potential reversal point from an uptrend to a downward movement (maybe this will become a downtrend but that’s for a later chart). The time to enter short is therefore as soon as the negative divergence is printed, or at least as soon after that point as confirmation of the end of the upward price movement can be seen. That is, as soon as possible after the second, lower peak of the histogram. The short position would have had to stand an uncomfortable period of continuing price rise out of price congestion, but followed by a dramatic down bar, then another one (incorrectly marked “reversal”) after a further failed attempt to resume the uptrend. If you missed this move, it ended with a period of 3 bars of congestion but price has now broken out above this.

You can say this was hindsight, but if you utilise an indicator like MACD to drive your trades (which I don’t) then you have to trust it, and get short when it gives a signal to get short.

You observed a negative divergence which this means that a correction to the downside is possible as we saw in the previous session in AUD/USD.