TMACD Divergence Indicator
The TMACD Divergence Indicator is a technical analysis tool that combines the traditional MACD (Moving Average Convergence Divergence) with divergence analysis to identify potential reversal points in price trends. It typically features arrows to signal bullish or bearish divergences, where the price action and MACD indicators diverge, suggesting a potential reversal. When the price makes a new high while the TMACD forms a lower high, a bearish divergence is indicated, while a bullish divergence occurs when the price hits a new low and the TMACD forms a higher low. Traders often use this indicator in conjunction with other tools for confirmation before making trading decisions.