The MACD Forex indicator signal line

The MACD Forex indicator signal line, MACD is one of the most popular technical indicators in the world, many traders use it. But do you know how to properly use the MACD technical indicator? This article will focus on the most popular indicator used in technical analysis, the moving average convergence divergence (MACD).

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MACD Indicator Guide MACD Indicator Guide - MACD is one of the most popular indicators used by most of the traders. MACD stands for Moving Average Convergence Divergence, which can be translated in German, with an indicator of the convergence / divergence of the moving average. The MACD, which was invented in the 60s by Gerald Appel, it is a very popular with forex traders technical indicator that is usually displayed below the price chart. As you can see from the attached chart, the indicator consists of two lines and a histogram. Subtracting the MACD line is calculated by default by the EMA [12] from EMA [26] (exponential moving averages see). MACD Indicator. The MACD indicator is basically a refinement of the two moving averages system and measures the distance between the two moving average lines. The MACD Forex indicator signal line is the EMA [9] of MACD line. To obtain the histogram, you must subtract the signal line of the MACD line.

The MACD Forex indicator signal line
MACD Divergence Forex trading strategy — is one of the quite reliable systems and is based on the standard MACD indicator. MACD Indicator. The MACD indicator is basically a refinement of the two moving averages system and measures the distance between the two moving average lines. In the graph one can also see that the MACD rises above 0, if the 12 EMA crosses the 26 EMA. Then the difference is in fact greater than zero.

When MACD is a trend following indicator, it does so best in trends. Trends in sideways out of the MACD is unfortunately too many false signals. There are countless ways to use the MACD to act, the majority of forex traders use it but for the following information.
By crosses of the MACD (blue), its signal line (red) from the bottom up creates a buy signal. The crossing from top to bottom has to be interpreted as a sell signal.

The further the MACD line away from its center, the stronger the trend. Here one must be careful however, because if the distance is too large, the market may be overbought or oversold and there may still be a trend change.

The distance between the MACD signal line of his is an indicator of the strength of the trend. The farther away from the MACD line, the stronger the trend, since the short EMA (Standardized 12) rises faster than the long-term EMA (26).

I still want to note that one can not simply use the MACD for forex pairs, but that you calculate it exactly for the shares and all other values can be drawn on the charts can.
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Title Post: The MACD Forex indicator signal line
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Author: Herman Sucipto

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