Moving Average
Convergence/Divergence (MACD)
By now you should have a good foundation
of the MACD indicator. If you don’t, you might want to check out our lesson on
MACD.
MACD is one of the most common
indicators used by forex traders and for good reason. It is simple yet
dependable and can help you find momentum, and in this case, the lack of
momentum!
MACD can be displayed in several
ways but one of the “sexiest” ways is to look at it as a histogram.
What this
histogram does is actually show the difference between the slow and fast MACD
line.
When the histogram gets bigger, it means momentum is getting stronger.
When the histogram gets smaller, it means momentum is getting weaker.
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