Wednesday, July 2, 2008

MACD with RSI




The MACD proves most effective in wide-swinging trading markets.

Crossovers: the basic MACD trading rule is to sell when the MACD falls below its signal line. Average Convergence/Divergence rises above its signal line.

It is also popular to buy/sell when the MACD goes above/below zero.

Overbought/oversold conditions: The MACD is also useful as an overbought/oversold indicator.




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