Why is MACD a good indicator?

Having characteristics of both leading and lagging indicators, along with a moving average trigger line, the MACD presents the kind of versatility and multifunctionality traders covet. Perhaps more importantly, the trend-following and momentum-forecasting abilities of the MACD are not bogged down by extreme complexity.

What is the best indicator with MACD?

Moving average convergence divergence is a charting indicator that can be used with other forms of technical analysis to spot potential reversals. Support and resistance areas are commonly used with MACD to find price points where the trend might change direction.

Do professional traders use MACD?

Momentum is one of the most important concepts use to generate strategies by professional traders. As momentum accelerates the price of an asset can break out or break down, signally to traders that a trend is beginning.

How do you read MACD lines?

When the MACD line crosses from below to above the signal line, the indicator is considered bullish. The further below the zero line the stronger the signal. When the MACD line crosses from above to below the signal line, the indicator is considered bearish. The further above the zero line the stronger the signal.

What does MACD 12 26 9 mean?

When the EMA-9 crosses above the MACD(12,26), this is considered a bearish signal. It means the trend in the stock – its magnitude and/or momentum – is starting to shift course. When the MACD(12,26) crosses above the EMA-9, this is considered a bullish signal.

How do you read MACD?

What is a good MACD number?

The histogram is positive when the MACD line is above its signal line and negative when the MACD line is below its signal line. The values of 12, 26 and 9 are the typical settings used with the MACD, though other values can be substituted depending on your trading style and goals.