consider different versions of the trend indicator MACD.
Personally, I think this indicator is "simplistic Stochastic." This makes it easier for data analysis, less retarded and more close to the price. However, the filtering of false alarms will be much worse.
In other words, these two oscillators are each other. And we do not just hear the arguments of supporters of both. Given my general position of the oscillators (see the chapter "oscillators"), I see no advantages to any one of them. However, I encourage beginners to use those they like (and at first, use optional).
Thus, the MACD was developed by Gerard Appel and uses three moving averages in their construction.
The graph has two lines:
MACD1 = EMAh EMAu-Line (1) MACD2 = EMAz (EMAh-EMAu) - line (2)
first line (called line MACD) is the difference between two exponential moving averages smooth the price.
The second line is that it is an approximation. Averaged over a certain number z.
signals are formed, as in any classical oscillator. And I told them about the chapter on the Stochastic.
Divergence - so is a situation where the direction of price movement and the technical indicators are not identical. In classical literature, the divergence is a strong indication of a trend reversal. Usually, however, added that the divergence is triggered "if corrective price movement, and the trend - is deceptive," that makes a statement that it is a sign of "trend reversal" fiction.
Personally, I do not trust any divergence or anything else that is spoken in classic books on the oscillator. And I repeat the idea that the oscillators on the history can be adjusted to whatever you like.
Several modified MACD
As you know, built in MT4 does not the MACD, which is advised to use most of the classics. There is no additional smoothing curve.
This MACD fill this gap. I note that the intersection of black and red lines, even at this site will be fletovom quite effective. In particular, they predict a long bearish candle on the right.