Divergence - Facts, Types
MACD deviation alone can't be used as FX sell signal. Before making any long or short commitment, the current price action should vindicate the deviation. In another words, confirmation is needed to open a counter - trend day commerce. For template, there is a bettering deviation, so the actual price is making a tiny flat. If the commerce find support at the present-day diminutive spot and heading upward by either making higher lowlands or penetrating and standing overhead resistance, that's the kind of expense action for confirmation of reversal of trend. Whether the market proceeds making lower lessens, a counter - trend position should never be initiated in that situation.