STOCK EXCHANGE GUIDE
- MACD Moving Average Chart treading indicator
very effective chart indicator. volume tread view. money flow almost good indicator MACD indicator display All Chart allow insert on click option indicator. 60% to 80% Accuracy
- how to use MACD indicator
The Moving Average Convergence-Divergence (MACD) indicator is an example that follows the momentum of trends by showing the relationship between the two moving averages of the collateral value. You can install any moving average in this model that suits your wishes, and also thoroughly check your safety. In the trading chart, the MACD was designed to use descriptive moving averages for 26 and 12 days.
The full MACD indicator, as indicated in this number, includes:
- Index line
Trigger (usually the moving average of the indicator, shown above the indicator)
- The arrows in this figure indicate where you can buy and sell:
Buy: In the MACD indicator window, the trigger crossover and MACD indicator occur before the crossover of the two moving averages in the upper window. If you look to the left, the MACD tells you that you bought two days before the moving average crossover.
Sell: The real profit comes with the next signal - exit. Here, the MACD tells you to sell more than two weeks before the crossover moving average.
On the right side of the chart, the MACD tells you to re-enter, while moving prices are still fluctuating.
The MACD predictive ability makes it one of the most popular indicators, but it is not a crystal ball. Be careful not to overdo it. Shock can arise and cause the price to vary in style, so the tendency to meet or diverge becomes irrelevant. The new price setting is improving, and because the MACD contains moving averages, the index is still waiting for the price event like any other moving average.
You may find it difficult to read the MACD indicator, unless the bullet actually crosses the index line. You are not alone. Another way to display the MACD, in the histogram format, is much easier on the eye.
- In this figure, each bar in the histogram represents the difference between the two moving averages on that day. You are not using the trigger line in the histogram because you can see how fast the histogram bars close to the zero line.
Zero: Two moving scales have the same number of numbers - they have a difference between them.
While the barriers grow longer: The difference between the two currencies is increasing (variance), and the organization tends to continue.
When the bars stop growing and begin to shrink: Two moving averages meet - beware of a signal change.
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