MACD indicator full explanation

MACD indicator full explanation

Assalam alaikum Dear forex members!

• umeed ha ap sb thk hn gy or apki trades achi ja rhi hn ge.
• dear members last posts main hm ny forex chart patterns complete kye thy or aj se hum Indicators ko seekhna shro karen gy agr ap ny meri pchli posts ni read ki to ab kr len taa k apko charts ka proper knwledge ho or phr ap es k sth indicators ko use kr skn.

What is MACD indicator?

• Moving average Convergence and divergence (MACD) 1 technical indicator ha jo k ksi bhi trading pair ki moving averages k relation ko show karta ha.
• Ye 26 Exponential moving average ko 12 moving average se minus kr k hamen average values btata ha.
• MACD market k bullish or bearish hony k sign btata ha es main 1 signal line hoti ha jb MACD us line se nechy jata ha to trader confirmation k bad sell kr skty hain or jb MACD signal line se opr jata ha to traders confirmation k bad Buy ki trade le skty hain.
• MACD 1 histogram ki shkl main hota ha jo k apni signal line k oper ya nechy move karta ha.

Relation between MACD & RSI:

• Dear members MACD or relative strength index (RSI) ko aksr ikthy use kia jata ha signal ki confirmation k lye.
• RSI hamen btata ha k market ab overbought ha oversold ha. RSI 1 oscillator ha jo k average gains or losses ko given time period main calculate kr k btata ha.
• jb k MACD 2 Exponential moving averages k relation ko measure krta ha.
• ye dono indicator ikthy use kiye jaen ap market k momentum ko measure kar skty hain.Q k ye different values ko calculate karty hain kr baz oqat ye different indication bhi dety hain market ki.
• kbhi kbhi RSI overbought ka signal deta ha mgr MACD btata ha k momentum abi totally ni ha to estrha ap 1 glat trade leny se bach jaty hain.

Limitations of MACD:

• MACD ki sb se bari limitation ye hoti ha ye k bht bar divergence show krta ha or reversal ka singal deta ha jb k hr bar market reverse ni hoti.
• es lye koe bhi indicator ho us k signal k sth sth apko price action se confirmation bhi lazmi lena chahye ta k ap ki trades profitable hn.