CitiFX Pro News - Moving Average Convergence Divergence (MCD)

 

CitiFX Pro News - How-to Guides

Moving Average Convergence Divergence (MCD)
06.01.2012

The Moving Average Convergence Divergence (MCD) is a tool used to identify bullish or bearish trends. MCD is plotted as two trend lines based on two moving averages. The shorter moving average (12-days) is quicker to react to price movement than the longer moving average (26-days). When a new trend occurs, the fast line will react first, and eventually cross the slower line. When this ‘crossover’ happens, and the fast line begins to diverge away from the slower line, it often indicates that a new trend has formed.

If you wish to apply the MCD indicator go to:

Trading > Charts >  > Oscillators > Moving Average Convergence Divergence (MCD)

Once you have selected the indicator a menu will pop up (see below). From here you can adjust the moving average period for the long and short line. You can also change the colour and the size of the indicator. Once you are happy with the settings click ‘OK’.

As you can see from the screenshot below, we have applied the MCD indicator as a separate pane within a EURUSD chart.

If at any point you wish to edit the indicator or delete it all together, simply click on the MCD icon and select ‘Properties’ or ‘Delete’.

The CitiFX Pro platform is fully customisable, which means that the fun doesn’t just stop with the indicator. You can edit, adjust and alter everything from the chart style to the size of the font. You can even add custom annotations and diagrams, all at the click of a button.

Once you’re happy with the study rightclick on the chart and go Chart > Save Study

Here you’re able to save the study for future reference. You can also save the chart in a variety of different formats if you wish to view them using different software.

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