Real Time Forex Chart Indicators


Using real time Forex chart indicators can help you figure out the best place to get into and out of the market. One of the best and most widely available indicators to use is the MACD. So what is the MACD and how does it work? You're about to find out, my friend.

What is MACD?

The term "MACD" is an abbreviation for moving average convergence divergence. There you go. You're welcome. Now go off and make a million dollars trading the Forex market.

I kid, I kid (Triumph voice).

The MACD is oh so much more than that. The basic purpose behind MACD is that it helps you determine when a trend is about to form. As a wise man once said, "The trend is your friend." So basically, you could say that the MACD can help you find new friends. It's the social networking site of Forex indicators.

How it Works

When you put the MACD indicator on your Forex chart, you will see three different numbers. The first number you see is the amount of periods that were used to figure the first moving average. The second one is the number of periods for the slower average. With the third figure, you get the difference of periods between the two.

You'll see a little section at the bottom of the chart with two lines moving up and down. Sometimes they move beside each other and sometimes, they cross over each other.

Trading With the MACD

Trading with the MACD indicator is pretty simple. You watch the chart and wait for the line that represents the faster moving average to cross over the slower one. Once the line crosses over, you also must wait for it to start moving away from the other line. Once this happens, it could be an indicator of a new trend forming in the market. At that point, you place a trade in that direction and ride it to victory.

Let's go over that again.

The faster line crosses (converges) over the slower line. Then it starts to move away from the slower line (diverges). You've got a convergence followed by a divergence. Pretty basic stuff, but it can really work.

Return of the MACD

To trade with this indicator, you will simply need to apply it to your chart. It is available in the Metatrader platform which is offered with most Forex brokers.

To make it work, open up a chart on your platform. Then go to the "Insert" tab on the top of your screen. Then go to "Oscillators" and then select "MACD." At that point, you'll be taken to an options screen and you can enter different time frames. It comes with the number 12, 26, and 9 already filled in. Leave it on those settings unless you have some other timeframes you'd like to try. This will put the indicator into your real time Forex chart and you begin picking out trends like a pro.

Return From Real Time Forex Chart to Forex Charts

Return From Real Time Forex Chart to Forex Trading

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