FOREX THEORY


Moving Average Convergence/Divergence (MACD)

By now you should have a good foundation of the MACD indicator. If you don’t, you might want to check out our lesson on MACD.

MACD is one of the most common indicators used by forex traders and for good reason. It is simple yet dependable and can help you find momentum, and in this case, the lack of momentum!

MACD can be displayed in several ways but one of the “sexiest” ways is to look at it as a histogram. 
What this histogram does is actually show the difference between the slow and fast MACD line. 

When the histogram gets bigger, it means momentum is getting stronger. When the histogram gets smaller, it means momentum is getting weaker.





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