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Divergence
BULL A divergence occurs when MACD begins to move upwards and price, is still
making minimal.The positive divergences (bull) are probably just an indication
and are not triggers market, so it should not be interpreted as isolated and
unique but usually lead to larger movements.
Bull Crossing Mobile Media
In the event that you use the crossing of two moving averages 12 and 26 on the
chart, you should know that the signs are probably more common and less reliable
by themselves. The moving average crosses are sometimes used to confirm a
positive divergence. In the figure above shows that we cross as one of EMAs
were, which was however not validated by the Signal line that crosses to the
North - the South is low, giving investors the trigger of the first signal, in
this case the strongest signal is certainly crossing the Signal "0", which is
the natural release of the indicator. In this case it is necessary to confirm
through a filter the signals generated by the crossings of the EMAs.
Sometimes it's wise to apply a filter of the price crossing the moving average
to be sure it will hold. An example of a filter if the purchase price would be
histogram bankruptcy on Signal EMA 9 sessions and is up for two consecutive
closures. The signal then begins purchasing at the end of the second session.
Bull Crossing or the Zero Line
(valid for crossing Bear or downwards)
A bullish crossover of the center line is when it moves on the Signal line and
zero in positive territory. This is a clear indication that when the market has
changed from negative to positive, a bullish or Bearish. After a positive
divergence and a moving average crossing upwards (north - south), crossing the
center line can act as a confirmation signal (Trigger). Of the three signals,
crossing the zero line is the safest.
In the graph above look like a crossing of the "Zero Line" near the July 25,
2005 at the Aud-Usd pair, gives a short signal, culminating a bull signal
earlier and later in July 28, 2005, detailed yellow, there is a signal to
trigger bull, the arrows indicate the possible outputs of the signals because
the histogram is above and / or below the signal line, respectively, indicating
a weakening of the dominant trend at that time and an impending change.
