This video from FXStreet explains how to use the MACD, one of the most popular indicators to identify trade opportunities in the forex market.
MACD is great at identifying change because it compares what is happening right now to what was happening a little while ago.
MACD shows you when there is a change in the current market environment:
- If the market was moving in a trend and not making progress, MACD will note that as a change in the current market condition.
- If the market was previously in a range and now it is taking off in a direction, MACD will note that as a change in the current market condition.