MACD refer to Moving Average Convergence / Divergence. This technical indicator is often used by traders to illustrate the relationship of a 26-day and 12-day Exponential Moving Average.

Moving Average Convergence / Divergence or better known as the MACD is an indicator of a relatively simple and has a good level of reliability. Originally MACD was used by Gerald Appel MACD as a tool in analyzing trends and changing direction daily until the weekly cycle.

MACD uses two Exponential Moving Average (EMA) to indicate overbought or oversold condition that fluctuates above and below the zero line (zero line). On the MACD there are no absolute figures such as restrictions on Stockhastic Oscillator which typically uses the limits 30-70.

…Click here to read more

Momentum is a forex technical indicator used in technical analysis by many traders. Momentum is an indicator that calculates the amount of change in the price of a product within a certain instrument.

Momentum indicators movement often precedes price movement at the time of the change in direction of trend in the trade. Therefore, the Momentum indicator can be used as early indicators (leading indicators).

The use of momentum indicators is similar to the use of indicators Price Rate of Change (ROC). Both these indicators are equally indicated that the rate of change of a product price. However, the Price ROC indicator shows the percentage of price changes while the momentum indicator showing the ratio of price changes.

…Click here to read more