ATQAP: Indicators: Difference between revisions
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* Many false positives -- especially during sideways market | * Many false positives -- especially during sideways market | ||
* Suggested to be used in conjunction with other indicators | * Suggested to be used in conjunction with other indicators | ||
* Lagging | * Lagging indicator - trails behind the actual price action | ||
== Bollinger Bands == | == Bollinger Bands == | ||
Revision as of 21:38, 13 December 2020
Moving Average Convergence Divergence (MACD)
- Momentum indicator calculated by taking the difference of two moving averages of an asset price (typically 12 period MA and 26 period MA).
- A signal line is also calculated which is again a MA (typically 9 period) of the MACD line
- The MACD line cutting the signal line from below signals bullish period and the former cutting the latter from above signals bearish (also called crossover strategy)
- Many false positives -- especially during sideways market
- Suggested to be used in conjunction with other indicators
- Lagging indicator - trails behind the actual price action