I've been working on this system for a while now. Using the MACD on high TFs I can build a range for Support, Resistance and Neutral Zones. Using this system makes for easy short term scalp plays. However just by looking at how much resistance vs support my bias is still to the down side.
When you get a double top or double bottom in price and the oscillator either puts in a lower highs (bearish) or higher lows (bullish) this is known as an Exaggerated Divergence.
What we have here is a double top in price and lower highs on the MACD oscillator making an 'Exaggerated Bearish Divergence'.
