How Do You Use MACD In FOREX?
The moving average convergence divergence (MACD) is a useful technical indicator for investors and traders. This indicator can be applied in virtually any market including FOREX. MACD is a momentum indicator that is calculated by taking the difference between two different exponential moving averages. Additionally, another exponential moving average is calculated from the result and acts as a signal line. Select a currency pair to trade. Make sure you have trading software or an online brokerage that allows you to display the price chart of the currency pair along with the MACD. Observe the indicator and notice how the MACD and the signal line periodically cross above and below one another. When the MACD crosses above the signal line, it is a signal to buy and when it crosses below the signal line, it is a sell signal. Notice that there is a horizontal line passing through the MACD. Use this line as an indication of support and resistance. If the MACD bounces off this line, look for a
