MACD is an acronym for Moving Average Convergence Divergence. This technical indicator is a tool that’s used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, a top priority in trading is being able to find a trend, because that is where the most money is made. There is a common misconception when it comes to the lines of the MACD.The two lines that are drawn are NOT moving averages of the price. Instead, they are the moving averages of the DIFFERENCE between two moving averages. Because there are two moving averages with different “speeds”, the faster one will obviously be quicker to react to price movement than the slower one.When a new trend occurs, the fast line will react first and eventually cross the slower line.When this “crossover” occurs, and the fast line starts to “diverge” or move away from the slower line, it often indicates that a new trend has formed.
Forex Beginners Level 1
What is forex?Forex is Foreign exchange.It is the opportunity to trade two currencies against each other. If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit. If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.The foreign exchange market, which is usually known as “forex” or “FX,” is the largest financial market in the world. The Forex market is a global, decentralized market where the world’s currencies change hands. Exchange rates change every second so the market is constantly moving. Most of the currency transactions that occur in the global foreign exchange market are bought (and sold) for speculative reasons. Currency traders (also known as currency speculators) buy currencies hoping that they will be able to sell them at a higher price in the future.
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Forex Beginners Level 2
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Forex Beginners Level 3
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