Macd

[Pyroo8]

MACD or Moving Average Convergence Divergence Indicator is one of the most well known and widely used indicators for a variety of trading instruments and platforms.
MACD is based on moving averages formula that creates a crossover signal pattern. MACD is a momentum trend indicator. It was written by Gerald Appel in the 1970's.
MACD can be used either as a line indicator or as a histogram or bar indicator. It is best used for buy entries.
Althought the moving average convergence divergence indicator is very popular it does not provide a complete analysis for stock trading and must be used with other indicators for reliable entries...i likes to use it both ways.....on my platform i have to one is a expert indicator and the other is a a reg 1

[notaniceman]

There is nothing offending in these discussions. all that each of us doing here is putting forward our views forcefully from our own experiences.

how each trades uses MACD and each one has a different way of reading it. some use the default parameters, but there are other who tinker with it to suit his style of trading. in fact this is where the traders become creative and I prefer to try out each of these to see if it really works well with other indicators to give me a better entry and exit.

[mzmz_egy]

can anyone tell me what is the best optmization for this indicator to be in its best shape .. which is more powerful its two lines or the histogram shape?

[darksorrow]

can anyone tell me what is the best optmization for this indicator to be in its best shape .. which is more powerful its two lines or the histogram shape?

The best setup is called the default setup which comes at thee value of 12, 21, and 9. I am also using this setup on H4 time frame.

[notaniceman]

One can try out different set ups to see if it really gives out a good signal. apart from the default I recently tried with 8, 28, 8. tested for 2 days, so far ok. but need to see if it really worth keeping. I trade on very short time frames. Prefers 1M and 5M more than others. for main trends I use weekly and daily.

[Chuna1985]

I've not heard about this indicator, it's cool based on the fact that it is possible to run it side by side with other indicators to make it reach it's full potentials.

[notaniceman]

Following too many indicators is not good for a trader. work with one or two indicators. by the time all indicators confirm we would have lost many opportunities. use a simple indicator that you can fine tune every now and then to suit the change in market conditions.

[Chuna1985]

Can anyone tell me what is the meaning of momentum? I am confused it with.

And what is the difference between oscillator and momentum indicator?

Momentum can simply be defined as the strength of an upward or downward trend in forex trading.
You can visit babypips.com for more.

[notaniceman]

when the price of a pair moves swiftly and moves up or down, it is said to have some momentum. most leading indicator are momentum oscillators where as the lagging indicators are known as trend following indicators. both are indicators.

[Pipsy_Boy]

Momentum can simply be defined as the strength of an upward or downward trend in forex trading.
You can visit babypips.com for more.

Thanks for the information. I searched the meaning of momentum in dictionary but didn't got the exact meaning.

@ notaniceman: What is the difference between a momentum and trend following indicators?

[gohed20]

as a momentum indicator, may macd to late to tell us the nw trend. so i think, i must have a nother indicator to combine.
but when the MACD has give a cross signal, its a true signal