Posted by forex at 8:49 AM
Read our previous post
1. Create a price chart of a stock, bond, currency or other financial instrument you want to analyze. Choose any time frame for the chart. MACD analysis works on quick intraday charts, such as a five-minute chart, or long-term charts, including daily, weekly or even monthly charts.
2. Add the MACD indicator using the technical analysis library available for your charting platform. It may be available in a special category for 'Lower Studies' or 'Lower Indicators.' For example, with the free Big Charts online charting service, simply select 'Indicators' from the chart options on the left of the screen when using the 'Advanced Chart' interface. Then select 'Lower Indicator' and choose 'MACD.'
3. Customize the MACD setup options if desired. A traditional MACD indicator uses default settings of 12 and 26 for the two averages that comprise the primary MACD line itself and 9 for the moving average of this line. However, some platforms enable you to change these settings.
4. Click on 'Apply' or 'Add' in your charting software if you have made any changes to the MACD settings. The MACD line will appear under your price chart with the new settings.