Community Forex Questions
How to use MACD indicator?
Despite the fact that MACD is quite simple in its calculations, it is able to give us a fairly complete picture of market conditions.
1. As the indicator is calculated using two moving averages, it gives the first signal, which is like a combination of moving averages. If the histogram of the indicator is positive, it indicates that the market for the asset in question is going up. The trend is also downward if the histogram is in the negative zone.
2. As soon as the histogram of the indicator crosses zero, two averages have been crossed, indicating a change in market trend. When the histogram crosses zero from top to bottom, it indicates that the trend is changing from ascending to descending.
1. As the indicator is calculated using two moving averages, it gives the first signal, which is like a combination of moving averages. If the histogram of the indicator is positive, it indicates that the market for the asset in question is going up. The trend is also downward if the histogram is in the negative zone.
2. As soon as the histogram of the indicator crosses zero, two averages have been crossed, indicating a change in market trend. When the histogram crosses zero from top to bottom, it indicates that the trend is changing from ascending to descending.
Dec 13, 2021 12:18