Thursday, September 6, 2007
Forex Day Trading - Whats all the fuss about MACD divergance?
Forex Day Trading Technical - Whats all the fuss about MACD divergance?
The MACD is one of the most popular technical indicator like EMA (Exponential Moving Average) and is used in analysis very frequently.
The common use of MACD is mostly by convergence and divergence. When the currency pair is making higher high and the MACD is making lower highs then it means that forex market is about to start going in another direction.
The same is true with lower lows..So, the use of MACD can be done to confirm with a leading indicator such as EMA or parabolic sar.
When using any of these indicators, it is very important to use a well proven system. A very popular one is the G7 forex trading system, also known as Forex science..Go check it out.Labels: convergence and divergence, currency trading, EMA, forex day trading, forex technical indicator, MACD, Moving Average, technical analysis
