● What is the MACD Indicator? (Simplified Explanation)
The MACD (Moving Average Convergence Divergence)
is a technical indicator used to measure the strength of the trend and momentum in the market.
📊 It consists of 3 parts: 1️⃣ MACD Line
2️⃣ Signal Line
3️⃣ Histogram
🔄 How are the signals generated?
When the MACD crosses above the signal line → potential buy signal
When it crosses below → potential sell signal
📈 Uses:
Identify the beginning or end of a trend
Confirm entries and exits
Measure the strength or weakness of movement
⚠️ Important note:
❗ You cannot rely solely on the MACD indicator for trading
It is preferable to combine it with:
Support and resistance
Trend
Other indicators
━━━━━━━━━━━━
📌 What is the MACD Indicator?
MACD (Moving Average Convergence Divergence)
is a technical indicator used to measure
trend direction and momentum.
📊 It consists of: 1️⃣ MACD Line
2️⃣ Signal Line
3️⃣ Histogram
🔄 Signals:
MACD crossing above the signal line → potential buy
MACD crossing below the signal line → potential sell
📈 Uses:
Identify trend changes
Confirm entries and exits
Measure momentum strength
⚠️ Important note:
❗ You should NOT rely on the MACD indicator alone
Combine it with:
Support & resistance
Trend analysis
Other indicators
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