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Tuesday, July 21, 2009

MACD (Moving Average Convergence Divergence)

(MACD) A trend following momentum indicator that shows the relationship between two moving averages of prices.

The "MACD Indicator" is another great tool that I use to monitor the trend movement...it helps me to determine when to enter the market, be it buying or selling...

It might look silly & maybe lame as all this tools or as they call it "Indicator" is known to all the traders out there, but there is a point to all of this...why pay a sum of money to learn all this as all we need to do is a bit of research on our part on how to go about using this mighty tools, as ultimately it will help us in our daily trading...

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