MACD, Moving Average Convergence Divergence

Moving Average Convergence/Divergence or MACD gives a view of the relationship between two moving averages of asset prices and the moving average of that relationship. It may be graphically displayed in a number of ways, among which is a plot of an MACD line indicating the difference of two exponential moving averages for a longer and shorter period respectively, and a so-called signal line, which plots an exponential moving average of the MACD. Another popular convention displays the divergence of the MACD line from the signal line in graphically as histogram.

As a plot of moving averages and a histogram, the MACD may be used as a stand-alone indicator and used effectively in combination. Popular strategies for interpretation include looking for crossovers of the MACD line and its signal line, or of the histogram zero midline, divergence of the indicator from price trends, and as a predictor of overbuying and overselling, as the shorter moving average deviates from its longer counterpart.

MACD

ECONOMIC CALENDARS
DATE	TIME	COUNTRY	EVENT	FORECAST	PREVIOUS
07/21/08	3:15am	Switzerland	PPI m/m	0.4%	1.2%
07/21/08	4:45am	United Kingdom	BOE Governor King Speaks
	8:30am	Canada	Core Retail Sales m/m	0.8%	1.1%
	9:30pm	Australia	CPI q/q	1.2	1.3%
07/23/08	4:30am	United Kingdom	MPC Meeting Minutes	8-1 hld	8-1 hld
	7:00am	Canada	Core CPI m/m	0.2%	0.3%
	5:00pm	New Zealand	Monetary Policy Statement
	5:00pm	New Zealand	Official Cash Rate	8.25%	8.25%
07/24/08	4:00am	Eurozone	German Ifo Business Climate Index	100.2	101.3
	4:30am	United Kingdom	Retail Sales m/m	-2.5%	3.5%
	10:00am	United States	Existing Home Sales	4.93M	4.99M
07/25/08	4:30am	United Kingdom	Prelim GDP q/q	0.2%	0.3%
	8:30am	United States	Core Durable Goods Orders m/m	-0.2%	-0.9%
	10:00am	United States	New Home Sales	508K	512K

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