Lesson 19: The Moving Average Convergence Divergence (MACD)

The MACD is an indicator whose calculation derives from the principle of moving averages. It consists of two curves that intersect periodically: the MACD line and the signal line.

It is therefore these crosses that we will study to obtain buying or selling signals.

Finding MACD Trading Signals

Sales signal: When the MACD line passes under the signal line.

Purchase signal: When the MACD line passes over the signal line.

Examples of MACD Trading Signals

It is thus noted that some signals function better than others, but that, in general, the MACD actually makes it possible to carry out judicious operations.

Several principles allow you to sort between false signals and signals that one can follow with confidence, a topic widely discussed in our professional training University of Forex.