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Thursday, March 22, 2012

The MACD Indicator on Trading Charts - How to Read and Use the MACD to Make Trading Decisions

This article explains what the MACD indicator is and what it is used for by financial market traders. It looks at three different ways that the MACD indicator on trading charts is used to make trading decisions. It keeps the explanations as simple as possible for inexperienced traders. Warnings are included about the unreliability of the MACD indicator when making buy and sell decisions. Advice is given on how the MACD indicator should only be used in conjunction with other technical analysis methods. The conclusion states that trading is risky and advises that trading strategies be practiced on demonstration accounts before trading with real money.

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