MACD is the one in-charge of establishing the price trends as well as forecasting the probable future movements of said prices or values being compared. When trading stocks or currencies, it is also important to assess the future activity of trading variables such as the price, aside from obtaining as much information as possible in a timely manner, allowing the investor to take advantage of price inefficiencies quickly.
An MACD tool has the ability to tell whether price averages will be expected to be bullish or perhaps otherwise. Nonetheless, MACD tools are essential in removing some of the cloud surrounding the investor's decision either to go for a deal or to delay it, as well as an increased volume for higher profits or decreased volume to avoid possible losses.
Trading on either stocks or the foreign exchange has been said to be the most volatile type of investment or business, but for the well equipped and disciplined investor, efforts can be greatly rewarded when they hit the jackpot, more importantly come the rewards with consistent profits being made. Aside from getting to know all the in and outs of the system, learning every CRUCIAL factor or indicator, a person wanting to venture into trading needs the aid of tools like MACD, guidance or training, and distinct set of calculators.
Among the favorite tool of successful traders is the MACD or the Moving Average Convergence Divergence. Stocks, foreign exchange trading and arbitraging involves a heavy deal of information gathering just to determine the probable price trend of each security or currency being traded, a step that MACD was purposely developed to make a much simpler and faster task.
MACD Formula
The MACD formula is primarily based on historical data of price averages determined on specific date ranges. Such averages are termed as EMAs or exponential moving averages since the trend is computed in an exponential manner. Among the commonly used EMA MACD values are the 9-day EMA, the 12-day, and the 26-day. MACD forecasts or calculations are presented in the form of a graph or chart with corresponding values ranging close to zero. When the MACD makes it calculations, it primarily makes use of the 12-day and the 26-day exponential averages.
The 12-day EMA is the faster EMA (since this trend is obtained on a shorter number of days) and the 26-day EMA is the slow one, leaving us with the 9-day trend which in most cases is too short to gauge or to predict a more accurate price momentum from the MACD formula. Most of the time the 9-day EMA trend is used when fluctuations are so rough that the charts or lines provided by the MACD need to be smoothed out.
Now, to provide the investor with an onset expectation on the price trend, the MACD formula is simply the fast EMA less the slow EMA. We have pointed out that the MACD values would range close to zero, either positive or negative. This leaves us the question of how an investor can decide or use that MACD value with an example of let's say a 0.003 MACD value or perhaps a -0.003?
MACD Makes Profitable Predictions For Currency Traders
When the stock or currency price is expected to be bullish, the MACD value would be positive, that is the 12-day EMA MACD value is greater than the 26-day EMA MACD value. As an investor who is expecting that prices will go up based on current market conditions, one would most likely decide to sell his commodity either today, or the near future to take advantage of the future price increase.
On the other hand, a negative MACD value would translate to a bearish or downward probability. In this instance, the investor may readily sell his inventory to avoid being hit by sudden or expected price fall or perhaps, get hold of his stocks or currencies and wait for a bullish trend. All of these trends are presented on a graphical or chart form for the investor to have a better picture or appreciation of this very useful tool. Computations are presented to be simple, but actual work of the MACD tool is far more complicated.
How To Harness The True Power Of An MACD System
Finding the right system or place to learn and utilize the ever popular MACD tool for your trading, can be a difficult and challenging task to say the least. We have written this post on our site, not just to help others learn about the subject of MACD, but to also help traders bypass the garbage that is out and go straight to one of the most reputable training programs in the industry that specifically teaches investors how to profit from Forex trading utilizing the MACD platform.
Forex Trading Coaches teaches the use of the MACD 3 trading system which is an MACD system that is an exact, logical and simple to follow 2 step process designed to completely take the guess work out of trading the Forex. The primary goal of this MACD system is to stack the odds of winning trades back on the investor. Forex Trading Coaches states that their synergistic approach with this simple MACD 3 trading system is the secret sauce that can give traders the predictability and consistent results they desire with the shortest learning curve possible.
Forex Trading Coaches MACD 3 System Benefits
Participants of the MACD 3 system offered by Forex Trading Coaches receive many great benefits as members and include the following:
$4.95 - 5 day trial for full access to the MACD 3 system, which includes a 30 day money back guarantee.
Learning how to execute step by step Top Down Market Analysis to locate major price levels of support and resistance.
Access to the MACD 3 Forex Trading System online video course which shows you how the MACD 3 system integrates seamlessly into helping you locate major price levels of support and resistance.
Learning how to keep momentum in every trade as the driving forces behind helping the trade go in your desired direction after entry.
Learning of how to schedule a specific 2-4 hour "Hot Time Period" for you to trade in the Forex market.
Learning of how to set price alerts at predetermined price levels, freeing yourself from staring at you PC all day.
Learning of how to minimize your losses and maximize your gains, letting your profits run once you understand the exact set up conditions, entry rules, initial stop, and exit conditions for each trade.
Access to all of the otherwise extra tools that the MACD 3 system utilizes on a daily basis which include the proprietary MACD 3 Forex Charts Pro Enhancements, MT4 Forex demo account, proprietary semi automated MACD 3 Trade Assistant EA expert advisor as well as Forex Trading Coaches own Forex Income and Projections Calculator Spreadsheet.
Email and phone support.
Live Forex trading Webinars held Mon-Fri between 5:45 am and 9:oo am Pacific Standard time.
Fast track mentor-ship group training held several times per week.
Uploading ....