Momentum Analysis Using MACD - Timing Entrance And Exit

Momentum analysis using MACD (Moving Average Convergence Divergence) can be applied to most charts to see if the trend is fading or increasing. When used correctly in conjunction with other facts/ indicator or patterns, it can tell you when to enter the trade and when to exit the trade.

The Moving Average Convergence Divergence technical indicator is displayed below an actual stock chart and consists of several parts.

Typical default settings of 12, 26, 9 can be adjusted if desired include the MACD signal lines, Moving average and display them as histrogram.

When used in conjunction with Elliott wave, you can see which part of Elliott Wave we are in and then trade accordingly.

If you are not familar with this analysis, the following free video and limited time free report shows you how to use these indicators to aid your trading decision.

Momentum Analysis Using MACD

Learn more about using Momentum analysis to make Elliott wave trading decisions in this video by EWI European Interest Rate Analyst Bill Fox. Find more lessons on technical indicators in EWI's newest free report. See the information below.

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