This standard MACD from an MT4 platform only appears to show 2 of the 3 moving averages eg, no blue line. Why is this?
If you’re going to attempt to use an MACD, the only thing that matters is the histogram anyway. Why do you need another line to confuse you?
Yes, it will be the histogram that will be the best to use, to lose money using MACD, any further lines will be just as effective too.
The other line is just another setting on it.
the babypips school Lagging Indicators (Momentum Indicators) | Oscillators and Momentum Indicators | Learn Forex Trading implys it is the crossing over of the MACD lines that are important though
In your MT4 MACD, the histogram is the red line, and the red line is the blue line.
See where the red line crosses the line drawn by the histogram in your picture?
Those are the crosses you seek.
Fairly worthless in the long run though. About the only thing with much merit, and even that is subjective is the histogram.
It’s used primarily for divergence signals, and it works… Occasionally. But there’s more to it than just divergence. Confluence factors, and price action can make or break a trade.
I understand now, thanks. I do have several indicators on anyway so I just want to see how MACD relates to them. How does Stocastic divergence compare to MACD?