Hello, can we use macd histogram for divergences too?
Like in this exemple:
https://www.tradingview.com/x/DcUNOhvA/
Edit: (more exemples)
https://www.tradingview.com/x/mSvkaGpJ/
https://www.tradingview.com/x/dUenNh5F/
Does it look like you can in those examples?
Did you notice other ones in those images that weren’t shown with a trendline?
There were divergences on some highs that weren’t shown. They implied a bearish sentiment but the price went up.
They are signals, but whether you use them and how you use them is up to you. If you chose to use them, it is important that you understand what they mean.
Essentially, the histogram shows how much momentum price has compared to other times by showing the difference between the MACD line and the Signal lines.
It stands to reason that if measured momentum is different between two highs or lows when the price is the same, that should pull up some flags.
As a straight up answer to your question, I do all the time.
Others may not want to. You should back test it with your plan.