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Forex indicators What does MACD measure?
avatar Michael
Question by: Michael - 06 Dec 2017, 12:11:29
What does MACD measure?
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Answers (1)
avatar user 12875
Answer by: Lisa123 - 17 Jan 2018, 12:16:20

Hi, Michael! The MACD technical indicator is based on the strategy of convergence/divergence of moving averages. It is applied by traders in order to estimate and forecast future fluctuations of quotes. In other words, this indicator defines the direction and strength of a trend as well as points of reversal. On the chart, the indicator demonstrates convergence and divergence of two moving averages: the fast and the slow ones. The fast MA provides a short-term outlook for a trend while the slow MA gives a longer-term forecast. The distance between these two lines shows strength of either bullish or bearish trend.

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