In my articles, I offer my thoughts about trading ideas and different tools. Today I'll tell you about indicator - an instrument that has to be known by every trader. Also, we will try to forecast the SYS price movement by using .
MACD allows to determine the direction of the current trend and also (momentum).
You have to know that differs from other indicators because it doesn't have oversold/overbought zones and its scale is absolute not percentage as RSI's, for example.
This indicator consists of line, a signal line, and histogram. If you are interested in the mathematical model of the indicator, you'll have to study it by the net. I'll tell only about its practical application. line is based on 2 MAs and shows current trend. The signal line is MA that is built on values of line. It gives an earlier signal of a trend change. The histogram shows the interaction between line and signal line more clearly.
Use next signals of this indicator when trading:
1) The line crosses zero level of indicator scale (upward cross is a signal to buy)
2) The line crosses signal line (upward cross is a signal to buy)
So there is an upward cross of an upper line and a signal line on the SYS graph now: gives the signal to buy. Monitor this graph for some time.
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