Nifty futures are the highly liquid trading segment which made it most traded trading segment. Nifty futures are also a highly fluctuating trading segments thus it requires a complete study of the market before trading. A trader should study fundamental and technical tools to generate a strong strategy for nifty futures.
There are numerous technical tools but some are significant. MACD is one of the top five technical tools used in nifty futures for the successful trading. The moving average convergence divergence (MACD) is a trading indicator to use in technical analysis of stock prices. It is the best trend-spotting tool and considered to reveal changes in the strength, direction, momentum, and duration of a trend.
As the name is enough to understand that the moving average convergence divergence tool is a comparison of the relationship between two moving average lines of nifty futures. The first line indicates the difference between the values of two moving averages and is supposed the MACD line. The second line indicates the moving average of the MACD line. The line crosses above or below the trailing moving average of the MACD line are often seen as buying and sell signals. Both MACD line is centered on a zero line and will travel above and below that level depending on the strength and length of a trend.
Most technical analysis software adds a third component to the MACD indicator- a histogram that extends above and below the zero line. This is not information but it is the difference between the two lines which start at the horizontal level. It can be made visually easier to spot trends by the histogram. We - Money Classic Investment Advisers are leading company providing authentic services of a market. We offer effective tips on nifty futures to the traders so that they can make desired return from the market.
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