An Analysis on MACD – Compatible Technical Indicator for Stock Price Movements

The market indices do not fall on straight line. The upward and downward movements are interrupted by counter moves. The underlying trend can be understood by smoothing the data and it can be done in many ways like simple average and oscillators like Average true range, moving average convergence and divergence, Exponential moving average and stochastic models. This paper attempts with MACD technique and complementing with the support and resistance model this particular technique is very efficient for its accuracy and as well as it facilitates the investor a comprehensive understanding. Hence this technique provides the guidelines for any normal buyer and seller with the reliable predictions and easy to understand.