MACD

It's not a secret that to trade successfully on the forex market, it is required to constantly carry out technical analysis of the chart. In practice, there are so many methods to study the currency market, but they all require considerable time. That is why traders use forex indicators to facilitate the trader's work at this stage.

The MACD and RSI trading strategy is highly popular among new traders and scalpers. Its simplicity and amount of trading signals make it a versatile approach to trading forex. Another benefit is the ease of developing an expert advisor (EA) in MT4 using the MQL4 editor that comes together with the MT4 installation. Alternatively, traders may find it in the marketplace either for free or at a small cost. Since the MACD and RSI trading strategy is a straightforward trading strategy, there is no risk of an EA not functioning as coded, and traders can test it in a demo account.

All forex traders try to find a trading strategy that works for them. Technical analysis is widely used and usually consists of multiple technical indicators. The MACD (moving average convergence/divergence) is at the center of many manual and automated trading strategies, developed by Gerald Appel in 1979. It measures the strength, direction, momentum, and duration of price action. Since it delivers plenty of insight, it became one of the favorite oscillators in forex trading.