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Wednesday, October 6, 2010

How to take advantage of MACD

MACD generally means Moving Average Convergence Divergence.
This MACD line is being derived by using the differene between 26 days & 12 days moving average.
This MACD line usually moves above or below the Zero line.
The 9 day moving average line or we may call it as the Signal Line is being drawn either across or below this MACD line to let you measure/judge whether is it a Buy or Sell indication.





The Blue color line is the MACD line and the Red color line represent Signal Line.

A Buy indicator is formed usually when the MACD Line rises and cut across and above this Signal Line.

A Sell indicator would be the opposite when the MACD Line falls below this Signal Line.

N.B.
(Invest at your own decision)









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