Understanding MACD (Moving Average Convergence Divergence)
20.39 $
| Author |
Edward Dobson ,Gerald Appel |
|---|---|
| Format |
eBook |
| File Type |
|
Understanding MACD is a concise yet powerful guide dedicated to one of the most widely used technical indicators in trading—the Moving Average Convergence Divergence (MACD). Written by Gerald Appel, the original creator of MACD, together with Edward Dobson, this book provides traders with a rare opportunity to learn directly from the source of one of the most effective trend-following and momentum tools in technical analysis.
The authors explain the core structure of MACD, which is built on exponential moving averages, and detail how the interaction between the MACD line, signal line, and histogram reveals shifts in market momentum. Unlike many trading books that briefly mention MACD, this guide is fully dedicated to explaining its mechanics, applications, and adaptability across timeframes and asset classes.
With extensive chart examples, the book demonstrates the practical use of MACD for identifying buy and sell signals, confirming divergences, spotting market tops and bottoms, and managing trades. Traders will also learn about using different MACD settings for short-term, intermediate, and long-term trading, as well as combining MACD with other tools like trendlines, cycles, and relative strength indicators for enhanced accuracy.
This ebook is invaluable for traders at all levels who want to refine their timing skills, gain a deeper understanding of momentum analysis, and consistently align their trades with the prevailing trend.
✅ What You’ll Learn:
By studying Understanding MACD, you will master the nuances of one of the most trusted technical indicators in modern trading. Key insights include:
- How MACD is constructed using exponential moving averages (12, 26, and 9-period EMAs).
- The difference between the MACD line, signal line, and histogram, and how to interpret their interactions.
- The three primary methods of using MACD: line crossovers, divergences, and extreme rises/falls.
- How to recognize positive and negative divergences as early warnings of potential reversals.
- Practical strategies for applying MACD in short-term trading, swing trading, and long-term investing.
- The role of the MACD histogram in anticipating turning points before line crossovers occur.
- How to combine MACD with trendlines, moving averages, and cycles to build a stronger trading framework.
- Effective stop-loss and trade management techniques using MACD signals.
- Case studies covering stocks, bonds, currencies, futures, and intraday charts.
By the end of this book, you will have the ability to confidently apply MACD in any market environment, understand when its signals are most reliable, and integrate it into your trading system to improve consistency and profitability.
📚 Table of Contents:
Key Points & Overview of MACD
- Structure of MACD
- MACD Line and Signal Line
- Basic Buy and Sell Signals
- Using Divergences to Recognize Reliable Signals
- Comparing MACD to Other Indicators (Momentum Oscillator, RSI)
- Combining MACD with Trend Following Techniques
Applications
- MACD in Strong Uptrends and Downtrends
- Treasury Bonds and MACD
- Stop Loss Signals for Unsuccessful Trades
- Using Trendlines to Confirm Buy and Sell Signals
- Long-Term MACD Signals
- Spotting Market Bottoms and Tops
- MACD as a Day Trading Tool
- Time Cycles and MACD Confirmation
Technical Appendix
- How to Compute and Maintain Exponential Moving Averages
- Summary of MACD Procedures (Buy/Sell Rules)
References & Resources
- Articles and Annotated Bibliography
- Suggested Further Reading
Understanding MACD (Moving Average Convergence Divergence) by Gerald Appel & Edward Dobson
