Today we’ve asked Tony Edwards to share his favorite indicator with our readers. Tony Edwards has been an active independent trader for nearly 20 years. He trades an extremely wide range of instruments with a special focus on YM, ES, 6E, CL and GC. He offers traders daily, unique support and resistance levels (“TraderSmarts Numbers”) as well as Live Trade Alerts via www.tradersmarts.net.
Today I thought I would talk about my favorite indicator, the MACD.
I could start by telling you what the MACD is (stands for Moving Average Convergence Divergence and plots 2 lines and a histogram. The MACD line, or the fast line, is the 12 day EMA - the 26 day EMA, the signal line, or slow line, is the 9 day EMA of the MACD line, and the MACD Histogram is the MACD line - the signal line) or who invented it (Gerald Appel in the late 1970's) but instead I am going to tell you how I use and interpret it. Continue reading "Some Thoughts On Oil And My Favorite Indicator: MACD"