Comment on Indicators (Part 2)

invest_novice commented on 11 Jan 2018, 02:24 PM

I didn’t understand the convergence and divergence of the MACD line. Convergence means when the difference between the two MA reduces. Divergence means the difference increases. So going by this definition when MACD line comes closer to 0(irrespective of whether it comes from + or – side) it is convergence while if it goes away from 0 it is divergence. But in the explanation it is mentioned as if the MACD line crosses 0 from above(goes from + to -) it is convergence while if it crosses it from below(from – to +) it is divergence.

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