The MACD developed by George Appel, is a very popular indicator. Personally one of my favourites. Below I will discuss three main spreadbetting strategies with the MACD. How it is calculated in three steps:
- MACD: Calculate the spread between a 26-Day EMA (Exponential Moving Average) – 12 EMA. This differential represents price velocity
- MACD Signal Line: 9 Day EMA of the MACD Line.
- MACD Histogram: The MACD minus the MACD Signal Line
The MACD is a very effective and popular tool. There are three main strategies used to spreadbet with the MACD.
- MACD – Moving Average crossover
- MACD – Divergences
- MACH – Histogram
Next Page:Spread Trading the MACD – Moving Average Convergence Divergence