DOUBLE EXPONENTIAL MOVING AVERAGE (DEMA)

MACD

MACD

MACD Is the most simple and very reliable indicator used by many traders. (Moving Average Convergence / Divergence) is in its Base Moving Average. It calculates and displays the difference between the two moving averages at any time. As the market progresses, moving average increases with it. When the market is trending then there is a wide (deviation) and when the market is slowed, the trend starts to grow.

Standard indicators settings for MACD (12, 26, 9) are used in many trading systems. And these are the settings that MACD developer Gerald Apple found most suitable for both fast and slow moving markets. To get a more sensitive and faster performance from MACD can be used to reduce settings, for example, MACD (6, 12, 5), MACD (7, 10, 5), MACD (5, 13, 8)), etc. These custom MACD settings will accelerate the indicator signal. However, the rate of false signals is going to increase.

Related: DEMA, click here

Quick Summary

Lines crossover – a trend is changing
HISTREAM ZERO LINE – Above the market, down – downturn.
Histogram flipping over zero line – the strength of a current trend confirmed.
MACD is different from the price on the histogram chart – an upcoming reversal signal.

How to trade MACD

Related: CSI, click here

When the MACD line (this is a blue line) crosses the signal line (red dotted line) – we have a point (up or down) to evaluate. When the MACD line exceeds its zero points, enter the market with MACD deviation. Another entry strategy is to reduce or reduce the 2 most recent swings on the chart and draw a trend line; And then set an entry order on the breakout of that trend line. The MACD deviation trading method was not only used to predict trend turning, but also to confirm the trend. In the event of no deviation between the MACD and the value, there is a high probability of continuing unchanged in a current trend and the price was recently established after the top/bottom evaluation.

Related: How to Choose Stocks For Long Term Investment, click here

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