This unique blend of trend and momentum can be applied to daily, weekly or monthly charts. The standard setting for MACD is the difference between the 12 and 26-period EMAs. A buy signal can be indicated when the price level is decreasing while the Chaikin Oscillator starts to increase. This is because this can sometimes be an indicator that an uptrend is on its way. Conversely, a sell signal can be indicated when the price level is increasing while the Chaikin Oscillator starts to decrease.

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The MACD is then displayed as a histogram, a graphical representation of the distance between the two lines.
Analyze price action as well; slowdowns in a trend are visible without the use of the indicator, as are price reversals.
For example, if a sto […]

The standard MACD setup is useful in that this is what everyone else predominantly uses. But varying these settings to find how the trend is moving in other contexts or over other time periods can certainly be of value as well. Convergence relates to the two moving averages coming together. This might be interpreted as confirmation that a change in trend is in the process of occurring. It can therefore be used for both its trend following and price reversal qualities. In the example above, the […]