Trading Diary

A Positive Divergence occurs when MACD begins to advance and the security is still in a downtrend and makes a lower reaction low. MACD can either form as a series of higher Lows or a second Low that is higher than the previous Low. Positive Divergences are probably the least common of the three signals:

1. Positive Divergence
2. Bullish Moving Average Crossover
3. Bullish Centerline Crossover

…but are usually the most reliable, and lead to the biggest moves.