MACD Divergence Forex Signal Definition
The Moving Average Convergence Divergence indicator, referred to as the MACD indicator, is an indicator that gives you information about the trends of the market in the foreign exchange. The MACD is found by taking the twelve day exponential moving average (EMA), and subtracting it by the twenty six day EMA. A nine day EMA is then calculated for the MACD. It is this EMA that is used as a signal line which is plotted on top of the MACD in order to make decisions about whether to buy or sell certain currencies.
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Is the Candlestick Pattern a Profitable Forex Trading Strategy?Candlestick patterns are one of the oldest trading strategies used in the Forex (Foreign Exchange) industry. They have been in existence for over 500 years, when they first used in the Dojima area of China. In the current day, this strategy has become one of the most popular ways that traders use to forecast how the market will move. It uses past trends to predict future movements of currency.