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Understanding MACD(Moving Average Convergence/Divergence)
by Edward Dobson and Gerald Appel

As the title indicates, this book is about the MACD (moving average convergence/divergence) indicator and how to use it. The interesting thing about this particular book is that the author created it in collaboration with the creator of the moving average convergence/divergence indicator. That's right, Gerald Appel created the moving average convergence/divergence indicator in the 1970's.

Most of the book is a reprinting of the original moving average convergence/divergence manuscript in Appel's own words. He describes the main ways to use the moving average convergence/divergence, they are: divergences with price and (moving average convergence/divergence) moving average crossovers. He goes into some detail about the moving average convergence/divergence settings, and their use in relation to up/down/sideways trending markets. There is no new material written by Appel in this book, all new material is from Dobson.

Dobson adds his own introduction, commentary, and summary.

By the way that Dobson speaks in this book, it seems as though he is actually friends with Appel, and that they have get together's and all that stuff that friends do. There is also mention of a friend-type relationship with author, trader, and educator Dr. Alexander Elder (one of my favourite trading authors). Elder also runs a school where people learn trading. They do it in a different exotic vacation destination each year.

All in all, this is a short but good read. It is excellent for someone just learning about the indicator and it is also full of reinforcing and new ideas for someone who already uses moving average convergence/divergence. It is a valuable addition to your online trading education. I personally learned about using three different settings of moving average convergence/divergence depending on price trend intensity, as well as some reinforcing ideas regarding M A C/D - price divergences.

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