How to use the Moving Average Convergence Model
As shown in the chart, the recently confirmed it's drop below the LMA. This drop displays that in the short run, the stock's price has moved below the long run average. Knowing this, you can imply that the has been broken and the asset will begin its decent in price.
In the past, you can observe how when the orange line is above the blue line, the price plummets. And while the blue line is above the orange line, the stock price increases.
To Get Started With MACD:
1) Head to your chart and hit the "Indicators" tab in the top middle.
2) Type "MACD" in the search bar
3) Start off with the original one at the top, as you become more advanced with the indicator you can pick and choose a better option for you
Typical Intervals May Be:
- 12:26 (typical interval)
- 13:34 (for very short term trading)
This would actually be an example of a "Divergence" model due to the separation circled.