Crypto Trading 101: The Moving Average Convergence Divergence

More from: | Coindesk |

Simple trading methods like the trend-following approach work best when trading cryptocurrencies or financial markets in general.

While several technical indicators help identify changes in the strength, momentum, and duration of a trend, none are simpler and more widely used than the Moving Average Convergence Divergence (MACD).

By definition, the MACD “turns two trend-following indicators, moving averages, into a momentum oscillator by subtracting the longer moving average from the shorter moving average.”

Since the MACD is a “trend following” or “lagging” indicator, it trails pricing events that have already happened in order to gauge the strength of the current trend.

Like with most indicators though, money is made by understanding how to use the indicator rather than how it works,


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