Hey, What does everyone think of the negative divergence with MACD histogram indicator. Some say this is a very strong signal that rarely occurs... it looks like one is forming in GLD... check it out and let me know what you think see ya
It could be dangerous... the fundamentals don't necessarily scream short, however it still could be time for a correction... will you jump in and short tomorrow or wait for some other confirming indicators?
Yeah it's a strong signal, but I think it's not as rare as people make it out to be. It's common enough that it finds use, but the indicator itself is more reliable if it's in the direction of the long-term trend. ie. positive divergence at the bottom of a short-term pullback in a longer term uptrend. Take it as it is. Of course, there has also been negative divergence in the indices.. so. -show
I don't trade GLD, but it does look like a good one to short soon. Maybe tomorrow, but usually I need some other indicators telling me to go short especially in a daily uptrending market.