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RE: STEEM: 1-DAY MACD could be about to go green (soon!) on poloniex.
I learned that MACD studies different averages and their relationship in time. It's useful when measuring extremes because it has no limits, and it can be really useful when paired with an oscillator (e.g. RSI) to discover when a security is overbought or oversold.
Many use the MACD histogram as a momentum indicator which can also help you in deciding when to buy or sell. However, MACD is considered a lagging indicator so I try to look at other indicators too.
I'm no trading expert (currently teaching myself) and I encourage others to watch this video to learn more about it:
note: I'm in no way associated with Coinigy. I just find this video to be useful.
Cool! Thanks for your comment, and for posting that link!
Maybe I should be referring to MACD histogram rather than MACD... Anyway, whatever it should be called, it's what I use, along with EMA switch overs :)
But, yes , anything based on an average of recent prices will lag...but then that's the point. Either way, those are the two indicators I use. I've a heard a lot about RSI, but I can't ever say I have found it useful (although perhaps I didn't take time to try to understand it!)