Rita Savo
Does it really matter?
Articles by this Author
MACD Divergence or Moving Average Convergence/Divergence is a useful indicator for spotting major changes in market trend, indicate trend direction and for giving hints of a possible market reversal. It is one of the strongest signals generated by technical indicators such as crossovers and divergence from price on a daily chart.
Developed by J. Welles Wilder Jr., Average Directional Index (ADX) is one of the most trusted ways to evaluate the strength of the current market trend, be it upwards or downwards. Measured in an oscillator that fluctuates between 0 and 100, readings above 60 are considered comparatively rare. While a weak trend is marked for low readings below 20, a strong trend is indicated with high readings above 40, it is important to determine whether the market is trending or trading (moving sideways).


