UTRADE-FX
05-17-2010, 06:55 PM
http://www.youtube.com/watch?v=exp4ZMyp0AQ
Moving Average Convergence/Divergence (MACD)
Developed by Gerald Appel, Moving Average Convergence/Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero, without any upper or lower limits. MACD is a centered oscillator and the guidelines for using centered oscillators apply.
MACD Formula
The two moving averages that make up MACD, the 12-day EMA is the faster and the 26-day EMA is the slower. Closing prices are used to form the moving averages. Usually, a 9-day EMA of MACD is plotted along side to act as a trigger line
MACD Bullish Signals:
1. Positive Divergence
2. Bullish Moving Average Crossover
3. Bullish Centerline Crossover
MACD Bearish Signals:
1. Negative Divergence
2. Bearish Moving Average Crossover
3. Bearish Centerline Crossover
FOR MORE INFORMATION ON HOW TO OPEN A LIVE ACCOUNT PLEASE VISIT OUR WEBSITE
WWW.UTRADE-FX.COM
Moving Average Convergence/Divergence (MACD)
Developed by Gerald Appel, Moving Average Convergence/Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The resulting plot forms a line that oscillates above and below zero, without any upper or lower limits. MACD is a centered oscillator and the guidelines for using centered oscillators apply.
MACD Formula
The two moving averages that make up MACD, the 12-day EMA is the faster and the 26-day EMA is the slower. Closing prices are used to form the moving averages. Usually, a 9-day EMA of MACD is plotted along side to act as a trigger line
MACD Bullish Signals:
1. Positive Divergence
2. Bullish Moving Average Crossover
3. Bullish Centerline Crossover
MACD Bearish Signals:
1. Negative Divergence
2. Bearish Moving Average Crossover
3. Bearish Centerline Crossover
FOR MORE INFORMATION ON HOW TO OPEN A LIVE ACCOUNT PLEASE VISIT OUR WEBSITE
WWW.UTRADE-FX.COM