InvestorQ : What is the importance of the MACD indicator in technical analysis and how is it interpreted for traders?
Riya Dwivedi made post

What is the importance of the MACD indicator in technical analysis and how is it interpreted for traders?

Answer
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rhea Babu answered.
1 year ago


Moving Average Convergence/Divergence is one of the most popular indicators and is a momentum oscillator primarily used to trade trends. Normally, oscillators have been used to identify overbought and oversold outliers in any price range, but MACD goes much beyond that. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries. It is the crossover of the two lines give trading signals similar to a two moving average system with different time durations.