Using the MACD Indicator to Determine Market Trend – part II
The MACD, or “Moving Average Convergence Divergence,” is an extremely popular technical indicator. As I explained in my previous article HERE, MACD uses two exponential moving averages to render a visual picture of times when those moving averages are either converging on each other or diverging from each other. The changing posture of these two moving averages relative to each other, either converging or diverging, and of that posture relative to its own exponential moving average – called the “signal line” – gives the market technician information that can be used in rendering judgments about where the security might be heading in the near future.
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