Identifying impulse using MACD Hi fellows, MACD can be used for early indication in diverging market. MACD gives signal that price is going to change its direction very soon. If MACD shows sharp rise and fall and at the same time price forms impulse on the chart against the previous trending and diverging market then this indication can be used for change in trend direction.
Moving Average Convergence / Divergence (MACD)
Macd & A/D Education review for future references Some of you have asked about spike trading. One way I calculate future spike is by using my Fibs. I draw the height of the fib to match the height of the Macd & Accumulation/Distribution, then I draw it to the bottom of the Macd/Accumulation. You should notice that they precede each other. In other words they both end up in the same direction