MACD -- Momentum indicator
when we can use this
1) for trend reversal(if gap bw two MA is decreasing and crossover)
2) for continuation of trend( if gap bw two MA is increasing )
3) as per my assumption it cannot be used for price divergence.
Observation in Nifty50 chart:
1) High in MACD not broken till COVID but market doubled from 2007 high (6118 mark to 12450 mark)
2) Good momentum period (2000 to 2007) and (2019 to 2022).
3) Bw 2007 to 2019 market makes new high but momentum not good as other period
when we can use this
1) for trend reversal(if gap bw two MA is decreasing and crossover)
2) for continuation of trend( if gap bw two MA is increasing )
3) as per my assumption it cannot be used for price divergence.
Observation in Nifty50 chart:
1) High in MACD not broken till COVID but market doubled from 2007 high (6118 mark to 12450 mark)
2) Good momentum period (2000 to 2007) and (2019 to 2022).
3) Bw 2007 to 2019 market makes new high but momentum not good as other period