How to use the MACD

This video from FXStreet explains how to use the MACD, one of the most popular indicators to identify trade opportunities in the forex market.

Testing Simple Strategies: MACD Works and Futures are Rewarding

Traders are fascinated by indicators. But just because something is interesting, logical or mystical does not mean it works in the market. Testing is needed to be sure the indicator adds value, and we will define value as improving profits. If an indicator beats a simple trend following strategy, it adds value.

Trading Without Software

When just starting out, some beginning traders will want to use all of their available funds to trade rather than buying software and data feeds. In this article, we’ll look at how that can be done, using free end of day data and indicators.

Inside the MACD Indicator

By Alan Hull, AlanHull.com The MACD, Moving Average Convergence Divergence, indicator is probably the most popular indicator in use today. It is also one of the most misunderstood, with it often being described amongst chartists as ‘An average of an average’. Before we begin to dissect the MACD indicator it is necessary to mathematically define … Read more

MACD

The MACD oscillator developed by Gerald Appel uses two exponential moving averages of closing prices. These are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. This is the faster line you see on the chart. The slower line, called the signal line is a 9 period exponentially … Read more

Moving Average Convergence Divergence (MACD)

This classic technical indicator was developed by Gerald Appel – and it is one of the simplest and most trusted studies used by traders. MACD is the difference between a 26-day and 12-day Exponential Moving Average. A 9-day Exponential Moving Average – called the signal line – is plotted along with it. By comparing moving … Read more

A Trading Technique using the Inside Bar with the MACD

Technical analysis to predict price action in the financial markets is just another factor used to put the odds in favor of the trader. But relying on any single indicator to provide signals for a trade is not advisable. Since indicators derived from price action are lagging indicators, they confirm a signal only after the move has been initiated.