A Wealth of Knowledge

MACD is an acronym for "Moving Averages, Convergence, Divergence". The indicator itself was developed by Welles Wilder which uses two moving averages to calculate price movement in which a cross of these moving averages indicates price changes, a reversal, a beginning of a new a trend. The indicator comes with a 0.00 preset parameter that acts as a neutral line between bullish movements and a bearish movements in the charts. Meaning should histogram form above the 0 line, this indicates a bullish market and one prices the histograms drop below the zero parameter, this indicates a bearish movement. To learn more about this indicator click here.

« Dictionary