Today is the third day of Hang Seng Index MACD divergence
trending. Hang Seng Index closed at
23741, slightly lower than yesterday closed but intraday achieved 23829,
highest point in one year. The MACD line
recorded 391 at closed, still lower than the previous MACD point at 421. The MACD pace is slowing down. See table 1 for detail.
The divergence trending is still intact and it is closer to
confirmation.
How to determine divergence confirmation?
Condition 1 – The delta becomes negative. Which means MACD starts to reduce. This can assume 70% confirmation. Higher risk tolerance traders can pull the
trigger at this point.
Condition 2 – The MACD line (green) crosses below signal
(red) line. This is 100% confirmed.
Stay tuned!
Table 1
|
Day
|
MACD
|
Delta
|
|
5th Sep 2016
|
340
|
-
|
|
6th Sep 2016
|
373
|
33
|
|
7th Sep 2016
|
391
|
18
|
Disclaimer:
The above technical analysis does not imply any buy or sell
recommendation. The entry point, stop loss point, stop gain point
and any other technical indications stated in the article are solely for
experiment purpose. The author disclaims all liabilities arising from any
use of the information contained in this article.
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