This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.
MACD is placed at the bottom of the trading chart, under the price chart. The Moving Average Convergence Divergence is a relatively easy-to-use tool; however, it is crucial to understand it fully before attempting to trade using its signals. You can trade effectively by using MACD in combination with price action analysis.
Learn about MACD - Moving Average Convergence Divergence.
Understanding MACD before using it's signals in trade.
How to trade effectively using MACD in combination with price action analysis.
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