what is macd indicator in futures trade?

what is macd indicator in futures trade? macd is a indicator for analysis a coin in the crypto currency market.

what is macd indicator in futures trade?
what is macd indicator in futures trade?

MACD indicator history. MACD stands for Divergence, Convergence, Moving Average, which was created by Gerald B. Apple. This indicator is used to get the strength and momentum of a trend in technical analysis. Unlike other indicators, this indicator does not have a hard calculation formula and is usually calculated with closing prices. MACD supports two versions, old and new, which are different in appearance.

MACD indicator components

This popular indicator is used in futures trading by traders and professional traders. MACD consists of three main parts. signal line, macd line and histogram which are displayed as vertical lines at the bottom of the chart.

Application of macd indicator in futures trading

MACD is used a lot in trading, including calculating divergences and the beginning of a price drop and vice versa. When two signal lines and macd line intersect each other, a buy or sell signal is formed, which can be used along with other technical analysis tools to confirm a trade entry point. MACD is also used for futures trading. Traders use this indicator to identify the intensity of the upward or downward price trend.

macd has a simple calculation formula which is as follows. MACD line is produced from the average difference of 12-day price view from 26-day.

The signal line, which is a histogram in the new macd version, consists of the 9-day average of the macd. The point that does not need to be addressed here is the calculation of the formula. You do not need to know the formula to use this indicator in your trading strategy in the field of digital currencies, but you will learn by working with this technical indicator a little.

This indicator is different from other indicators such as Hicken-Ashi, so it is better to use macd as a tool along with other technical analysis tools to improve trading to get an excellent and reliable result.


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