Just realized a lot of traders sleep on MACD divergence patterns when they're literally one of the most reliable cheat sheets for spotting reversals. Let me break down what actually works.

First, the basics. When MACD line crosses above the signal line, that's your bullish setup. But here's the thing - don't just jump in. Wait for those green histogram bars to confirm the move is real. Same logic in reverse for shorts. Red histogram growing = trend weakening. That's your clue something's about to shift.

Now the divergence part is where it gets interesting. This is the real MACD divergence cheat sheet most people miss. You get a bullish divergence when price hits a lower low but MACD actually forms a higher low. That disconnect? That's weakness in the downtrend. Watch for this near support zones and you'll catch reversals early. Bearish divergence is the opposite - price makes a higher high but MACD forms a lower high. That's your sell signal right there.

The centerline crossover is simpler but effective. When MACD crosses above zero, momentum is shifting from bearish to bullish. Below zero means the opposite. I usually combine this with RSI to nail better timing though.

Here's what separates winning traders from the rest: use multiple timeframes. Check the daily for trend direction, then use the 4-hour for actual entries. Also, MACD divergence signals hit different when they're near actual support and resistance levels. That alignment matters.

One more thing - this indicator thrives in trending markets. During choppy, sideways action? Forget it. You'll get faked out constantly. And always watch that histogram. Growing bars mean momentum is building. Shrinking bars mean the trend's running out of steam.

Save this divergence reference for your next trading session. Which MACD setup works best for your style?