MACD is one of the most popular and reliable indicators for trading. M.A.C.D. is an abbreviation for Moving Average Convergence Divergence. It is fairly easy to learn and add to your trading plan to make great decisions.

This indicator involves plotting two momentum lines. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference. If the MACD and trigger lines cross, then this is taken as a signal that a change in the trend is likely.

MACD is placed at the bottom of the trading chart, under the price chart. The Moving Average Convergence Divergence is a relatively easy-to-use tool; however, it is crucial to understand it fully before attempting to trade using its signals. You can trade effectively by using MACD in combination with price action analysis.

In this class, we will use the charts on the TraderPro platform to set up MACD.

Be aware trading carries risk and not all strategies or rules work the same every time or have the same results for each trader. You should always understand your risks

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.