The MACD indicator is widely used to identify trend direction and momentum in gold trading. It calculates the difference between two moving averages and generates buy or sell signals based on crossovers and divergences. A well-crafted gold trading strategy uses MACD to confirm trend strength and potential reversals, helping traders avoid false breakouts. For example, a bullish crossover where the MACD line crosses above the signal line can signal a buying opportunity. Resources like gold strategy offer detailed guidance on interpreting MACD signals and integrating them with price action to develop high-probability trades.
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