65-Day Academy · Day 24 · Technical Analysis
MACD Divergence & Zero-Line Reclaims
The two power signals
1) Zero-line reclaim: MACD crossing above zero after a long sub-zero stretch = the 12/26 EMA pair has flipped for the first time in a while — a regime attempt that deserves attention (especially with price reclaiming its 50-day). 2) Divergence at extremes: price new low, MACD higher low — selling decelerating (mirror at tops). Both are REGIME-scale signals on daily/weekly charts.
The combination play
The highest-quality MACD setup: divergence at a price extreme, then a zero-line reclaim, then price confirming with a structure break. Three independent-ish lenses agreeing — that is confluence (day 28), and it is what separates indicator-reading from indicator-staring.
What you'll practise
Order the highest-quality MACD reversal sequence as it unfolds (1st → last).
15 XP in the app · intermediate
Sources
- MACDInvestopedia
- Technical Analysis: Power ToolsGerald Appel
Take this lesson graded in the app →
All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.