Forex encyclopedia

Random article: Forex MACD Indicator
MACD (moving average convergence/divergence) is a well-know technical indicator based on relation of two moving averages (MA) of price. This indicator is related to both trend indicators and oscillators. Notwithstanding it was first reported by Gerald Appel as early as in the end on 1970-s, this indicator is still popular today. Let's figure out why it gained popularity among traders, which useful information it provides and what are its pros and cons. Two types of MACD are distinguished: linear and bar chart. Let's consider each of them separately.
Forex market has its driving forces. Such forces are participants of market. For clarity, it is accepted to divide them into several types: bulls, bears, pigs, rabbits, hogs, lambs. In this zoo, driving forces are exactly bulls and bears. Their clear intentions and determination can greatly influence currency rates. This terminology was adopted from stock market, where emotions play not the last role in movement of quotes, thus, analogy with animals and their typical behaviour provides a clear idea on psychology of market participant.
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