www.myfuturesblog.com MACD (Moving Average Convergence Divergence). Is based on the moving averages of different time frames of price. The most popular times are 12 and 26 trading days with a 9 day moving average overlaid for a timing reference. When prices go up and an indicator goes down two are diverging. This is a good indication that the upward movement of price is getting weak. The same holds true for a price movement down. If prices continue down and the indicators start moving up it indicates the prices are gaining some strength and may start moving to the upside.
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