Daily Trading Advice

  • R1:1.2803 | R2:1.2880 | R3:1.3095

    S1:1.2707 | S2:1.2609 | S3:1.2510

    Sell @ 1.707 TP: 1.2803 SL: -

    EURUSD Strategy
    May 11th
     

     

  • R1:1.4886 | R2:1.4958 | R3:1.5054

    S1:1.4764 | S2:1.4680 | S3:1.4645

    Sell @ 1.4764 TP: 1.471 SL: 1.450

    GBPUSD Strategy
    May 11th
     

     

  • R1:93.57 | R2:94.03 | R3:95.00

    S1:91.64 | S2:90.83 | S3:89.90

    Sell @ 92.70 TP: 91.65 SL: 93.27

    USDJPY Strategy
    May 11th
     

     

Central Bank rates

USD 0.25% JPY 0.10%
EUR 1.00% CHF 0.25%
GBP 0.50% CAD 0.25%
AUD 3.75% NZD 2.50%

Moving Average Convergence Divergence - MACD

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The MACD indicator display graphically the crossing of two exponential moving averages.

It is usually plotted below the price chart through a single curve that tends to cross the zero line upwards and downards depending on the crossing of a slow and a fast exponential moving average.

It is visually more efficient to use the MACD instead of two simple MA, as crossings above or below the MACD 0 line are "sometimes" easier to spot than moving average crossings, especially when looking at the big picture.

The below chart points out how the MACD crosses the 0 line when the fast and slow MA cross each other, I have highlighted the crossing with red vertical lines.

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Be careful since the original interpretation of two moving averages as explained in the section entitled "Moving Average" is not possible only with the MACD (with the MACD alone one cannot know if the price is currently above or below the two MA).

However for regular interpretations based on crossings it is advisable to only use the MACD. If you apply previous teaching on the intepretation of MA crossings then you should know by now that if you see the MACD crossing the 0 line often on the last 20 bars, then you should stay away from the market (no trend).