Divergence is a disparity between the direction of the chart and the MACD histogram, where the chart moves up and indicates a rise in an asset’s price, while the MACD histogram is pointed down and indicates a drop in price.
If a divergence has formed between the chart and the MACD histogram, a trend reversal is possible, and the asset price may start to fall after the rise.
It is important to remember that divergence is a weak signal that is often inaccurate. It is not recommended to enter the market using only this signal. If you combine MACD with another oscillator, you can use the divergence as an auxiliary signal to confirm the signal from the main indicator.
