Moving Average Convergence Divergence (MACD)

HTS's Moving Average Convergence Divergence Indicator is an EMA based Moving Average indicator. It should be noted, that this indicator is NOT the MACD that you see on Bitcoin Wisdom, which is actually the MACD-Histogram Indicator but rather Exponential Moving Average or EMA.

Tip: Use during periods of high volatility to make the most out of price swings or to confirm trends.

Interface

Supported license & Trade types

Supported License

Supported Trade Types

Beginner license

Spot trading

Simple license

Margin trading

Advanced license

Leverage trading

Formula

Moving Average Convergence Divergence is an Indicator that has the following formula:

EMA = Price(t) * k + EMA(y) * (1 – k)t = today, y = yesterday, N = number of days in EMA, k = 2/(N+1)

General Settings

  • Exchange Website to monitor

  • Currency Pair to monitor for trade signals

  • Update Speed

  • Trade Signals

Tip: The exchange doesn't have to be the same exchange you are currently trading on.

Indicator Settings

  • Short Length

    • Number of candles (or time periods) used to calculate shorter EMA.

  • Long Length

    • Number of candles (or time periods) used to calculate longer EMA.

  • Signal Length

    • Number of candles (or time periods) used to calculate Signal Line.

  • Trigger Method

    • Method to determine situation type for signals

Uses

This indicator is useful for confirming trend reversals due to its lagging nature. It can also be used in conjunction with other lagging indicators to further confirm a trend reversal.

The moving average based indicators (like this one) work well when they are evaluating data over a long period of time. This is because the longer the timeline, the more accurate the average gets.

Moving averages perform best when there is a lot of volatility (meaning an overall uptrend or an overall downtrend). When the prices are stable there is not enough movement, causing the moving averages to become too sensitive. In this situation too many buy and sell signals will be produced.

A moving average is recommended with an update speed of at least 20 minutes. The common interval speeds are between 20 minutes and 3 hours.

The moving averages work best with mainstream crypto coins like BTC, LTC, and ETH.

Last updated