xSuper Trend RSI MACD Divergence Trading Strategy

High probability xSuper Trend RSI MACD Divergence Trading System and Strategy – Trading divergence is a classic way in which the MACD histogram is used.

One of the most common setups is to find chart points at which price makes a new swing high or a new swing low, but the MACD does not.

Traditionally this indicates the price is losing momentum and prime pickings for a reversal.

This also tends to be a very poor trading signal.

By understanding the MACD a little more, you’ll understand how it actually works so you don’t get fooled by its common false signals or lack of signals (when the price turns but the MACD doesn’t provide warning).

The two main problems with divergence are that it often signals a (possible) reversal but no actual reversal occurs – a false positive.

The other problem is that divergence doesn’t forecast all reversals.

In other words, it predicts too many reversals which don’t occur, and not enough real price reversals.

How to handle these problems…?

The answer is always utilizing trend filter indicator and price action with MACD Divergence.

In this article, I’ll show you how to use MADC Divergence indicator with trend filters to find high probability trading setups.

• Best Time Frames: H4
• Most Recommended Currency Pairs: GBPUSD, EURUSD, and all Major Pairs

• MACD Divergence
• xSuper Trend
• Relative Strength Index

• MACD Divergence
• xSuper Trend blue color line
• Relative Strength Index upward and above 50

• MACD Divergence
• xSuper Trend yellow color line
• Relative Strength Index downward and below 50

• If looking to enter a trade based on divergence, wait for the price to break the current xSuper Trend indicator and confirming the divergence with RSI above or below 50, before acting.
• Trust price action more than divergence.

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