- by Anna K.
One of the niftiest tools of trading is MACD indicator, which not all of traders know about, even though we are to know at least what it is.
MACD is a moving average convergence divergence indicator which is used in the trading chart in order to track trading momentum. It consists of two moving averages which display the dynamic of a price. There is a slow moving average and a fats moving average. Those, who can read the chart properly can easily identify a new trend with the way the averages are moving.