The foreign exchange market is the largest and most liquid financial market in the world. Traders are the ones who influence the market, and they dictate if the price goes up or down. Proteus Software comes in to show you exactly what the traders are thinking, exactly when they are thinking it.
MACD is one of the simplest and very reliable indicators used by many Forex traders. It calculates and displays the difference between the two moving averages at any time. As the market moves, moving averages move with it, widening (diverging) when the market is trending and moving closer (converging) when the market is slowing down and possibility of a trend change arise. For more details, have a look at our page for MACD(12,26,9)
Trading with this MACD indicator includes the following signals:
The indicator has the following values as parameters, applied to Close price:
The 20,200,20 were the values chosen by our team because the MACD crossovers provide the best long-term trend indications. They are also easier to predict as they don't react as much to real-life events as other values.
If you're looking to trade short-term though, you may want to have a look at the predictions for MACD(12,26,9).
| Bar no. | MACD(20,200,20) main |
MACD(20,200,20) signal |
|---|---|---|
| #1 | 90% | 95% |
| #2 | 88% | 92% |
| #3 | 85% | 92% |
| #4 | 80% | 92% |
| #5 | 75% | 91% |
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