forextra: One very important forex trading indicator that is based on moving averages is called the Moving Average Convergence Divergence, or the “MACD.”
Many traders use this indicator to decide entry- and exit-points from trades. Some, on the other hand, say that it lags trends too far. Experience on your own behalf will enable you to decide.
How Is MACD calculated?
The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger for buy and…
from Forex Trading Co – Currency Markets Explained: Tips, Strategies + More For Online Traders