Many investors will use the divergence between price action and a technical indicator for clues on when to enter or exit a trade.
Here, we will use the MACD Divergence for that purpose (via the MACD 2 Line indicator with the Zero line removed).
The MACD is frequently used as a lagging indicator, but we will use it in a unique way to be a leading indicator.
This indicator frequently indicates a reversal before it happens.
The price almost always reverses, but it does not always result in a profitable trade.
Click on graph to enlarge