![]() NIO had multiple bottoms, which satisfied the Price Pattern component, coinciding with the Bullish divergence on the MACD Indicator on the Daily Chart. The Options Hunter MACD Divergence must coincide with at least a Double Bottom or Double Top. Step 2: The second criteria is the Price Pattern. In this example, we’ve identified a Bullish Divergence on the MACD indicator in a striking contradiction to the Multiple Bottoms in the Price Action. We don’t employ other indicators such as RSI, Stochastics or Bollinger bands as we keep our approach simple, straightforward, and repeatable The Options Hunter approach focuses on divergences between the MACD and the price action. ![]() Divergences can occur in any timeframes and with many indicators, but we’ll address multiple timeframes in-depth shortly. Macd Divergences can be Bearish or Bullish and signals to option traders a potential opportunity for extraordinary gains. The stock or index is making new highs or lows, and the MACD indicator does not confirm new highs or lows, which is known as a divergence. Step 1: Divergences in technical indicators warn that the current trend is losing momentum in the short term. The Options Hunter Approach is based on four distinct aspects ![]() Bullish MACD Divergence -Trade Analysis NIO ![]()
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