The MACD forex indicator system is indicator oscillator introduced by Gerald appel , MACD Forex indicator tell you when momentum changes from being up trend to down trend and from being down trend to up trend. The Moving average convergence divergence forex indicator system can also tell you a trend reversal for forex market price.
How MACD forex indicator system is generated ?
The MACD Forex indicator is generated based on a moving average Forex indicator. The basic MACD shows distance between 26 days EMA and 12 days EMA. If the 12 days EMA is under the 26 days EMA , the MACD forex indicator will be negative, If the 12 days EMA is above the 26 days EMA , MACD forex indicator line will be positive. And MACD trigger line is 9 days EMA.
MACD Forex indicator system signal
The MACD forex indicator generates signals as MACD crosses back and forth above and below the trigger line.
Moving Average Convergence Divergence (MACD) Trading Signal
The moving average convergence divergence (MACD) produces trading signals as it crosses back and forth above and below the trigger line.
MACD forex indicator produces entry signal when MACD crosses above the trigger line ( 9 days EMA ), We can open long position after that momentum has changed from bearish to bullish.
MACD forex indicator produces exit signal when MACD crosses below the trigger line ( 9 days EMA ) , we can open short position after that momentum has changed from bullish to bearish.
The MACD Forex indicator system shoes the following strengths:
- MACD Forex indicator can determine when the momentum changes.
- MACD Forex indicator can ensure the strength of market trend.
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Forex is simple follow the trend and you will rich.
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