Technical Analysis: Head-and-Shoulders Reversal

Introduction A head-and-shoulders (H&S) formation is a chart pattern that indicates a trend reversal. It can occur at the top of an uptrend (i.e. H&S top) or the bottom of a downtrend (i.e. H&S bottom). It is important for one to keep in mind that a trend reversal must has something to reverse, which means … Read more

Technical Analysis: How to Read the MACD Indicator

In this article: MACD and Its Components Two Simple Ways of Using MACD MACD Continuation Signals MACD Histogram MACD Divergence MACD and Its Components The Moving Average Convergence/Divergence (MACD; pronounced “Mac-Dee”) is a trend-following momentum indicator that shows the relationship between two Exponential Moving Averages (EMAs) of the price of an underlying security. It is … Read more