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Columns MACD, the king of indicators.
MACD, the king of indicators.
**MACD (Moving Average Convergence/Divergence)** is a highly regarded tool in technical analysis, known as the "king of indicators" because it combines trend tracking and momentum measurement functions, helping traders capture market trend changes and buy/sell signals. Here are the key points of MACD and the reasons why it is hailed as the king of indicators:
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1. Composition of MACD
Fast Line (MACD Line): The difference between the short-term moving average (usually 12-day EMA) and the long-term moving average (26-day EMA).
Slow Line (Signal Line): The 9-day EMA of the MACD line, used to generate buy and sell signals.
Histogram: The difference between the MACD line and the signal line, used to display the strength of momentum.
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2. The core function of MACD.
Trend determination: Identify bullish or bearish trends through the relationship between the fast line and the slow line.
Momentum measurement: The histogram displays the strength and acceleration or deceleration process of the trend.
Buy and sell signals: the crossover of the fast line and the slow line, as well as the column chart transitioning from negative to positive or from positive to negative, provide clear entry or exit signals.
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3. The advantages of MACD
3.1 Combining trend and momentum
MACD combines trend analysis and momentum analysis into one indicator, helping traders identify the starting point and acceleration point of the trend.
It can not only tell you whether the current market is bullish or bearish, but also show whether the trend is strengthening or weakening.
3.2 Wide applicability
Applicable to various markets: whether it is Stocks, Forex, Futures, or cryptocurrencies...
**MACD (Moving Average Convergence/Divergence)** is a highly regarded tool in technical analysis, known as the "king of indicators" because it combines trend tracking and momentum measurement functions, helping traders capture market trend changes and buy/sell signals. Here are the key points of MACD and the reasons why it is hailed as the king of indicators:
---
1. Composition of MACD
Fast Line (MACD Line): The difference between the short-term moving average (usually 12-day EMA) and the long-term moving average (26-day EMA).
Slow Line (Signal Line): The 9-day EMA of the MACD line, used to generate buy and sell signals.
Histogram: The difference between the MACD line and the signal line, used to display the strength of momentum.
---
2. The core function of MACD.
Trend determination: Identify bullish or bearish trends through the relationship between the fast line and the slow line.
Momentum measurement: The histogram displays the strength and acceleration or deceleration process of the trend.
Buy and sell signals: the crossover of the fast line and the slow line, as well as the column chart transitioning from negative to positive or from positive to negative, provide clear entry or exit signals.
---
3. The advantages of MACD
3.1 Combining trend and momentum
MACD combines trend analysis and momentum analysis into one indicator, helping traders identify the starting point and acceleration point of the trend.
It can not only tell you whether the current market is bullish or bearish, but also show whether the trend is strengthening or weakening.
3.2 Wide applicability
Applicable to various markets: whether it is Stocks, Forex, Futures, or cryptocurrencies...
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Hi, mooers!
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Source: moomoo...
Singapore is turning 59! Let’s give our sunny island a big shoutout and wish it a Happy Birthday! 🎈🎊
Did you plan to join any National Day celebrations tonight? Spot any interesting NDP decorations? Our staff went to Jewel Changi Airport and caught the amazing light show there. Any mooers there too? Share your story with us NOW for a chance to win some reward points! Tap to join the discussion>>
Source: moomoo...
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Congratulations to Futu on hitting a major AUM milestone!
I have been putting my idle cash in $Fullerton SGD Cash Fund (SG9999005961.MF)$ and gained returns close to T-bills while maintaining the flexibility to withdraw my money within a couple days. This is a money market fund that allows me to sleep at night without worries. The feature to deduct money directly from the DDA bank account when subscribing to mutual funds is convenient.
Time in the market be...
I have been putting my idle cash in $Fullerton SGD Cash Fund (SG9999005961.MF)$ and gained returns close to T-bills while maintaining the flexibility to withdraw my money within a couple days. This is a money market fund that allows me to sleep at night without worries. The feature to deduct money directly from the DDA bank account when subscribing to mutual funds is convenient.
Time in the market be...
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