The Never Wrong Forex Trading Indicator - MACD

By subtracting the longer moving average from the shorter one, the MACD converts two trend-following indicators, moving averages, into a momentum oscillator. Therefore, the MACD provides the optimal combination of trend-following and momentum.

MACD is one of the most popular and dependable trading indicators. The acronym MACD stands for Moving Average Convergence Divergence. Significant judgments may be made relatively easily if you can learn and expand your trading strategy.

This indicator requires two momentum lines to be plotted. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is the difference's exponential moving average. If the MACD and trigger lines cross, this indicates that a trend reversal is imminent.

Moving Average Convergence Divergence is a reasonably easy-to-use technique, yet, it is essential to fully comprehend it before trading with its recommendations. Combining MACD with price action research allows for profitable trading.

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