MACD isn't particularly useful as an indicator, when trading the forex, except for warning of reversals. This is a clip showing the price action of EURJPY on 16th October. It shows the hourly price moves running up to today.
Price shows successive higher highs but the MACD histograms show successive lower highs. In foreign currency trading, we call this DIVERGENCE and it heralds an imminent price reversal.
Price went sideways into the London session but then fell over 150 pips around 10:00 London time.
The power of divergence.
Regards
Morty Sill
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