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A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Moving Average Convergence Divergence (MACD)

RSI provides a readily recognizable single index value, whereas moving average convergence divergence (MACD) involves three different moving averages. Its value is in its tracking of an ongoing trend and in the way it signals that a current trend has weakened and is coming to an end.

Developed by Gerald Appel in the 1970s, MACD uses its three “time series” calculations based on the closing price. The first two are a fast EMA (12 days of closing prices) and a slow EMA (26 days of closing prices). The third is a signal line EMA of the last nine sessions. Several values of MACD include the divergence between the two EMA lines, the movement of both EMA signals above or below the signal line, and the degree ...

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Publisher Resources

ISBN: 9780134190662Purchase book