what is a macd bullish bearish divergence 
a macd positive or bullish divergence is a situation in which macd does not reach a new low despite the price of the stock reaching a new low this is seen as a bullish trading signal hence the term positive bullish divergence if the opposite scenario occurs the stock price reaches a new high but macd fails to do so this would be seen as a bearish indicator and termed negative bearish divergence in both cases the setups suggest that the move higher lower will not last so investors need to look at other technical studies like the relative strength index rsi the bottom linemacd is a moving average best used with daily data just as a crossover of the nine and 14 day smas may generate a trading signal for some traders a crossover of the macd above or below its signal line may also generate a directional signal macd is based on emas with more weight placed on the most recent data which means that it can react very quickly to changes of direction in the current price move crossovers of macd lines should be noted but confirmation should be sought from other technical signals such as the rsi or perhaps a few candlestick price charts because it is a lagging indicator macd argues that confirmation in subsequent price action should develop before taking the signal 