1. MACD histogram divergence pattern The MACD histogram divergence pattern refers to the length and area trend of the red and green bars of the MACD technical indicator to observe whether there is a divergence from the stock price. If the stock price is in a continuous upward trend, and the length of the MACD red high bar chart is getting shorter and shorter and the area trend is getting smaller and smaller, the histogram gradually declines and moves in the opposite direction to the stock price trend. This divergence technical form means that the bulls in the market are not strong enough to rise, and there is a high probability that the subsequent stock price will reverse downward. This form belongs to the top divergence technical form of the MACD histogram, and is a peak reversal trend signal. (As shown in the figure below) On the contrary, if the stock price is in a continuous downward trend, and the length of the MACD green low bar chart is getting shorter and shorter and the area trend is getting smaller and smaller, the histogram gradually rises and moves in the opposite direction to the stock price trend. This divergence from the technical form indicates that the market is falling and short sellers have insufficient power, and there is a high probability that the stock price will rebound upward in the future. This form is a technical form of MACD histogram bottom divergence, and is a bottoming out trend signal. (As shown in the figure below)
2. MACD cross point divergence pattern The MACD cross point divergence pattern refers to the continuous cross point trend of the MACD technical indicator to observe whether there is a divergence pattern with the stock price. If the stock price is in a continuous upward trend, and the consecutive MACD cross points are lower than the last, the cross points will show a gradual downward trend and move in the opposite direction to the stock price trend. This divergence technical form means that the power of bulls in the market is reduced when the market rises, and there is a high probability that the subsequent stock price will reverse downward. This form belongs to the MACD crossover top divergence technical form and is a peak reversal trend signal. (As shown in the figure below) On the contrary, if the stock price is in a continuous downward trend, and the consecutive MACD crossing points are higher than one after another, the crossing points will show a gradual upward trend and move in the opposite direction to the stock price trend. This divergence technical form means that the market declines and short positions are reduced, and there is a high probability that the subsequent stock price will reverse upward. This form belongs to the MACD cross point bottom divergence technical form and is a bottom rebound trend signal. (As shown in the picture below)
3. MACD line DIF (white line) divergence pattern MACD line DIF (white line) divergence pattern refers to the DIF (white line) trend of the MACD technical indicator to observe whether It deviates from the stock price. If the stock price is in a continuous upward trend, and the high points of MACD's DIF (white line) are lower than the other, the DIF (white line) will form a gradual downward trend and move in the opposite direction to the stock price trend. This technical form of divergence means that the power of bulls in the rising market is reduced, and there is a high probability that the subsequent stock price will reverse downward. This form is a divergence form from the MACD line DIF (white line), and is a peak reversal trend signal. (As shown in the figure below) On the contrary, if the stock price is in a continuous downward trend, and the low points of MACD's DIF (white line) are higher than one after another, the DIF (white line) will form a gradual upward trend and move in the opposite direction to the stock price trend. This technical form of divergence means that the market declines and short positions are reduced, and there is a high probability that the subsequent stock price will reverse upward. This form is a divergence form from the MACD line DIF (white line), which is a bottoming out trend signal. (As shown in the picture below) The above are the three divergence methods of MACD shared with you. Investors can use these three divergence reference methods to observe the market or the trend of the stock. However, investors should note that there are no perfect technical indicators and technical forms in the market, and there will be some misleading information. They need to be combined with other indicators, market environment, and individual stock conditions for reference.
(This information is for reference only and does not constitute investment advice. You should evaluate it carefully when investing)