MACD Trading Indicator
The Power to Profit with the MACD Indicator teaches the many uses of the MACD tool. Developed in the late 1970s, the MACD indicator has to be one of the most powerful as well as predictive indicators. It is one of the simplest and most effective indicators used in trend following and momentum. With this book, you will learn how to use it as a trend following tool as well as possibly, more importantly, a momentum tool which shows quite often when trends are ending.
Gerald Appel developed the concept of the MACD (Moving Average Convergence Divergence) in the 1970s.
The MACD is based on taking two moving averages and subtracting the longer one from the shorter one.
The difference between the two moving averages becomes a histogram which fluctuates above and below the zero line as well as signal line.