MACD calculates the absolute difference between two moving averages. This means MACD values depends on the price of the underlying security. MACD shares for $ 20 can range from -1.5 to 1.5, and MACD for $ 100 can vary from -10 to 10. It is not possible to compare MACD values for a group of securities with different prices. An alternative is to use the Percentage Price Oscillator (PPO), which shows the percentage difference between two moving averages.
read more fx5_macd_divergence ea
other posts
- Heikin Ashi Support And Resistance
- Future Contract Explained
- Macd Crossover Arrow Mq4
- Forex Equity Monitor Indicator
- Heiken Ashi Bearish Reversal
