MetaStock Exploration Formula
MACD Histogram Divergence

MACD Histogram Divergence is regarded by Alexander Elder, author of TRADING FOR A LIVING and COME INTO MY TRADING ROOM, as the strongest signal in technical analysis.

According to him, this signal only appears once or twice a year on daily charts, and is worth waiting for.

A bullish divergence occurs when prices trace a bottom, rally and then sink to a new low, while at the same time MACD Histogram ticks up from its second bottom.

A bearish divergence occurs when prices rise to a new high, decline, and then rise to a higher peak, while at the same time MACD Histogram rises to a much lower high.

For detailed discussion and illustration on this trading signal, please read COME INTO MY TRADING ROOM, available at a discount from http://www.investorshop.com.au