MACD Energies Trading Classic Bullish and Bearish Divergence
MACD Energies Trading Classic divergence is used as a possible sign for a energies trend reversal. MACD classic divergence is used when looking for an area where energies price could reverse and start going in the opposite energies trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a energies trade.
1. It is a low risk method to sell near the energies market top or buy near the energies market bottoms, this makes the risk on your energies trades are very small relative to the potential reward.
2. It's used to predict the optimum point at which to exit a Energies trade.
There are two different types of Energies Trading Classic Divergence:
- Energies Trading Classic Bullish Divergence
- Energy Trading Classic Bearish Divergence
Energies Trading Classic Bullish Divergence in Energies
Classic bullish divergence in energies occurs when price is making lower lows (LL), but the oscillator technical indicator is making higher lows (HL).
MACD Energies Trading Classic Bullish Divergence in Energies Trading - MACD Divergence Strategy
Classic bullish divergence in energies warns of a possible change in the energies trend from down to up. This is because even though the energies price went lower the volume of sellers who pushed the energies price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downward energies trend.
Classic bearish divergence in Energies
Classic bearish divergence in energies occurs when price is making a higher high (HH), but the oscillator trading indicator is lower high (LH).
MACD Energies Trading Classic Bearish Divergence in Energies Trading - MACD Divergence Strategy
Classic bearish divergence warns of a possible change in energies market energies trend from up to down. This is because even though the energies price went higher the volume of buyers who pushed the energies price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upwards trend.
