Welcome To Our Hawley Advisors Blog

We hope you find the articles on our blog informative and helpful. You are always welcome to chat with us if you have any questions about your personal financial situation.

Stock Indicators - MACD

Over the coming months we will discuss a variety of stock indicators and how these can help an investor identify market cycles and significant shifts in market or company fortunes. Investors have different time horizons which can vary from 1 day to 30 years. Regardless of the investment timeframe, you must determine an entry and exit price which may or may not sync with your investment timeframe.

Stock market indicators can help identify market trends, volume, volatility and momentum across different timeframes. The longer the timeframe e.g. days, weeks or months over which one can measure results, the more consistent the resulting patterns and analysis will be. If you are trading intra-day then the bigger investment picture or outlook for a company, commodity, fund or ETF is hardly relevant. Chart indicators however can be helpful regardless of timeframe.

In this article we will examine the MACD or Moving Average Convergence Divergence indicator. This indicator can help identify shifts in trends in price both to the up and downside.

The MACD consists of two measurement metrics (signals) that can be charted as a fast line and slow line. The fast line measures a faster-moving average of price movements and the slow line measures a slower-moving average of price movements. The final metric used in this indicator defines the period of time.

We will not go into the technical details of how these indicators are measured. The basic concept of the MACD is that by using two different timeframes for measuring moving averages, when the fast and the slow moving average lines converge, they indicate a potential shift in market direction, up or down. Whether you are investing over mid or long term horizons these indicators can be measured over monthly, weekly or daily price discovery and timelines.

Identifying shifts in price trends is a significant factor that can help with investment buy or sell decisions, no matter what the timeframe. The MACD is just one indicator among thousands. Often, many indicators are used in concert to identify and confirm shifts in trends. Understanding technical analysis can be a valuable toolkit for an investor in their overall decision making. It can take many years to learn and master this aspect of investing but then again, no dicipline worth learning comes easily.



Technical Indicators - Bollinger Bands
China Issues Digital Currency - The Big News That ...

Main Menu

The Hawley Communique

Sign up for free to receive our signature quarterly reports.Not only will they keep you informed, you will get a unique and up to date objective financial perspective to navigate your pre and post retirement. You will also receive our retirement planning article series that provides helpful information about a variety of topics.

Subscribe Here

Hawley Advisor Publications

Download our free marquis papers written to provide valuable and actionable information to help you plan for your retirement and asset protection

Download Here

Company Info

Hawley Advisors
1600 South Main Street, Suite 190
Walnut Creek, CA 94596
Phone: 925-906-9800
Fax: 925-906-9884



Hawley Advisors is an investment advisor, registered with the State of California. Any investment ideas or strategies on this website are for the purposes of education and general information only and should not be construed as specific investment advice. For more information about our firm please check the SEC Public Disclosure website: https://www.adviserinfo.sec.gov/


Copyright © 2023 Hawley Advisors. All rights reserved.