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5.5 Trading MACD indicator instructions

MACD is brief for ‘transferring reasonable Convergence Divergence’. Convergence is relative to trend buying and selling and divergence is relative to buying and selling reversals.
Convergence:- when we use MACD to trade convergence we are searching for an an identical relationship between the indicator and prices. So, when MACD is rising we need to see that prices are additionally rising. When prices are falling we need to see the MACD indicator falling too. In easy terms, when the MACD indicator is above the 0 line and the histogram bars are rising an up-trend is happening. When it’s below zero and the bars are falling now we have a down-trend.
Divergence:- this is once we are in search of an reverse relationship between MACD and prices. So, when we have larger highs in the fee chart, MACD has to indicate decrease highs and vice versa. this means that the trend is weakening and therefore we change in reverse.


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