Momentum – Moving Average Convergence Divergence (MACD) Basics

Also known as Moving Average Convergence Divergence (MACD), momentum tracking informs a trader whether an asset’s momentum is rising or falling. Momentum tracking is used to track changes in short-term and long-term averages. Larger short-term averages signify increasing momentum. Slowing momentum indicates a general decrease in rate change and a possible eventual reversal.

Check out the video below about Understanding the MACD which outlines the basics of this indicator.

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