tailieunhanh - Technical Analysis from A to Z Part 5

The MACD ("Moving Average Convergence/ Divergence") is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel, publisher of Systems and Forecasts. | OQUIS A REUTERS Company Your shopping cart is empty Purchase Equis Products Online Products Support Events Partners Company Search Tips Search for Go Technical Analysis from A to Z Preface Acknowledgments Terminology To Learn More PART ONE Introduction to Technical Analysis PART TWO Reference A-C D-L M-O MACD Mass Index McClellan Oscillator McClellan Summation Index Median Price Member Short Ratio Momentum Money Flow Index Moving Averages Negative Volume Index New Highs-Lows Cumulative New Highs-New Lows New Highs Lows Ratio Odd Lot Balance Index Odd Lot Purchases Sales Odd Lot Short Ratio On Balance Volume Open Interest Open-10 TRIN Option Analysis Overbought Oversold P-S T-Z Bibliography About the Author Formula Primer User Groups Educational Products Training Partners Technical Analysis from A to Z by Steven B. Achelis MACD Overview The MACD Moving Average Convergence Divergence is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD was developed by Gerald Appel publisher of Systems and Forecasts. The MACD is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average called the signal or trigger line is plotted on top of the MACD to show buy sell opportunities. Appel specifies exponential moving averages as percentages. Thus he refers to these three moving averages as 15 and 20 respectively. Interpretation The MACD proves most effective in wide-swinging trading markets. There are three popular ways to use the MACD crossovers overbought oversold conditions and divergences. Crossovers The basic MACD trading rule is to sell when the MACD falls below its signal line. Similarly a buy signal occurs when the MACD rises above its signal line. It is also popular to buy sell when the MACD goes above below zero. Overbought Oversold Conditions Related Link Traders Library Investment Bookstore The MACD is also useful as an overbought oversold indicator. .