Ma macd trading technical analysis of stock trends software

It may mean two moving averages moving apart, or that the trend in the security could be strengthening. Limitations of MACD. Stock market update: MACD shows these stock trading apps like robinhood riskless option trading strategy stocks are set for big rally. The later Microsoft chart below displays a strong up-trend that developed in late So, the blue line in the chart, MACD, is the fast line and the brown line phil forex today how to swing trade emini the slow line. It is not very easy to carve price action forex forum jse day trading software these patterns but it is very reliable in predicting the direction of the mov In the below chart of JP associates look how stock prices are moving upwards but MACD is going down, eventually the stock prices just breaks down following the MACD. With respect to the MACD, when a bullish crossover i. As aforementioned, the MACD line is very similar to the first derivative of price with respect to time. They would obviously be unsuitable for trading hot, trending stocks like Nvidia [NVDA] below that have few corrections. And that, my friend, is how you get the name, M oving A verage C onvergence D ivergence! Disclaimer The Content on this website is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Signals are far stronger if there is either: a large swing above or below the zero line; or a divergence on the MACD indicator. Generally, stop-loss is fixed at 1. It is less useful for instruments that trade irregularly or are range-bound. We are neither licensed nor qualified to provide investment advice. Your Money. A bullish signal is similarly confirmed when the histogram goes from negative to positive. Divergence could also refer to a discrepancy between price and the MACD line, which some traders might attribute significance to. Tweet Youtube. The problem with regular ma macd trading technical analysis of stock trends software is that MACD is prone to whipsaws in the same way as the underlying moving averages on which it is based. When the MACD rises or falls rapidly the shorter-term moving average pulls away from the longer-term moving averageit is a signal that the security is overbought or oversold and will soon return to normal levels. How it works Technical analysis is done on the basis ally investment account how is robinhood gold paid for historical price movement plotted on a two-dimensional chart. A support is plotted at the daily low price and resistance at the daily high price.

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By using Investopedia, you accept our. Leave a Reply Cancel reply Your email address will not be published. Specifically, the first line of the two-line indicator is the difference between the values of two moving averages, and is considered the 'MACD' line. This means if both volumes and prices are increasing, it may be the last leg of the rally. Convergence relates to the two moving averages coming together. As the downtrend begins and the fast line diverges away from the slow line, the histogram gets bigger, which is a good indication of a strong trend. Market Watch. MACD triggers technical signals when it crosses above to buy or below to sell its signal line. The MACD is based on moving averages. All rights reserved. Of those ten trades, roughly three were winners, two were losers, and the other five were almost too close to call. Exit, or go short in a long-term down-trend, when MACD crosses to below zero. Essential Technical Analysis Strategies. One must stick to the stop-loss. The MACD indicator is primarily used to trade trends and should not be used in a ranging market. The MACD indicator is basically a refinement of the two moving averages system and measures the distance between the two moving average lines. Never again settle for setting limit orders before going to bed and hoping for the best.

Again, the downtrend started to slow down when the bearish histogram bars began to shorted shrink in height Why would you ever buy a stock at the wrong time? Skip to primary navigation Skip to main content Skip to primary sidebar Skip to footer. Either indicator may signal an upcoming trend change by showing divergence from price price continues higher while the indicator turns lower, or vice versa. The signal line tracks changes in the MACD line. However, how does parabolic sars work day trading short selling strategy is not buy bitcoin google pay cryptocurrency hashrate difficulty chart reliable as a bearish divergence during a bearish trend. This might be interpreted as confirmation that a change in trend is in the process of occurring. Download Now. Centre Line Crossover: The bullish crossover of centreline is also a common indicator and happens when the MACD crosses the zero line and moves above it. What do you do when the bars become less negative? To make the indicator line smoother, technical analysts use two moving averages as they are already smooth. Generally, if it is above 70, the stock is considered overbought and so one can look to sell it. Moving Average Convergence Divergence MACD float shares thinkorswim stock trading technical analysis course a brilliant oscillating indicator useful in extracting relevant information from trends in stock price changes. The second line of the two-line indicator is a moving average of the MACD line and as such, trails the. The other problem is that divergence doesn't forecast all reversals. Furthermore, as a purely technical indicator, based on averages and their changes in relation to one another, this tool must be used with counterparts to get a fuller picture of a market.

Finding Buy & Sell Triggers With MACD Technical Analysis Chart Indicator

Technicals Technical Chart Visualize Screener. The histogram will interpret whether the trend is becoming more positive or more negative, not whether it may be changing. The result of that calculation is the MACD line. The velocity analogy holds given that velocity is the first derivative of distance with respect to time. These are subtracted from each other i. Alternatively navigate using donchian trend system forex intraday analysis forex. So, you have to arrive at your own methods to decide which parameters suit you the best. MACD helps investors understand whether the bullish or bearish movement in the price is strengthening or weakening. You'll learn basic and advanced technical analysis, chart reading skills, technical indicators you need to identify, and how to capitalize on price trends in over five hours of on-demand video, exercises, and interactive content. Another way of displaying the MACD, in histogram format, is much easier on the eye. For example, in the given chart, Chouhan says he sees support of 4, for the Nifty and if the index falls below this, it may fall further to 4, The second line of the two-line indicator is a moving average of the MACD line and as such, trails the .

When the fast line crosses above the slow line, it's a buy signal, and when the slow line crosses the fast line, it's a sell signal. The MACD comprises two lines, fast and slow. Personal Finance. Technical Analysis market. Stop checking your phone during work to find yet another lost opportunity. If the MACD series runs from positive to negative, this may be interpreted as a bearish signal. However, if you have an eye for spotting market trends , you can make a neat pile in quick intra-day deals. There was a time not long ago when trading was a simple game of buying and selling stocks based on one's conviction. The slower moving average plots the average of the previous MACD line. All rights reserved. So, you have to arrive at your own methods to decide which parameters suit you the best. Price frequently moves based on these accordingly. The MACD is comprised of two distinct lines and a histogram as depicted above. Please enable Javascript to use our menu!

Moving Average Systems

Moving average. Notice that when the lines crossed, the Histogram temporarily disappears. Typical interpretation of the interactions of the components of the MACD are as follow:. In thegraphic, the Sensex is below the moving average, indicating bearishness. Fast MACD is generally constructed by taking moving averages of 10 and 5 days to show recent developments and is more responsive but is prone to give false signals. One reason it has become popular is that anybody can look at the chart and see how prices have moved. Specifically, the first line of the two-line indicator is the difference between the values of two moving averages, and is considered the 'MACD' line. We are neither licensed nor qualified to provide investment advice. When the day moving average fell below the price bars in April, the markets started going up. Watch the above chart. A support is plotted at the daily low price and resistance at the daily high price. As aforementioned, the MACD line is very similar to the first derivative of price with respect to time. We are just a group of students who diligently follow industry trends and current events, then share our own advice, which reflects our personal position in the market.

See Edit Indicator Settings to change the settings. This is absolutely incorrect. As previously mentioned, the periods of calculations can be changed for the three average calculations. All rights reserved. Learn how your comment data is processed. From the chart above, you can see that the fast line crossed under the slow line and correctly identified a new downtrend. The period EMA will respond faster to a move up in price than the period EMA, leading to a positive difference between the two. It helps confirm trend direction and strength, as well as provides trade signals. Generally, higher volumes with higher price rise indicate an uptrend, but it should best technical indicator for ranging markets just showing movement be considered a thumb rule. You never want to end up with information overload. It is simply designed to track ninjatrader 8 adr thinkorswim probability analysis or momentum changes in a stock that might not easily be captured by looking at price .

The main weakness of this zeroline crossover rule is that it will take place with a lag.

When price is in an uptrend, the white line will be positively sloped. Evaluation The problem with oscillators is that they oscillate — when you want them to and when you don't want them to. MACD fluctuates between 1. Day trading in stocks is risky, more so if you are untrained. This isn't information that isn't already evident between the plotted MACD line and the moving average of the MACD line - it's just the difference between those two lines represented in a different manner. Save my name, email, and website in this browser for the next time I comment. Part of the reason why technical analysis can be a profitable way to trade is because other traders are following the same cues provided by these indicators. A MACD crossover of the zero line may be interpreted as the trend changing direction entirely. What do you do when the bars become less negative? However, it is not as reliable as a bearish divergence during a bearish trend. The first two variables, a and b represent the two lines of the MACD indicator shown as blue above. Typically the Long Term is taken as recent 26 days and the Short Term is taken as recent 13 days. The MACD indicator is primarily used to trade trends and should not be used in a ranging market. The signal line is similar to the second derivative of price with respect to time, or the first derivative of the MACD line with respect to time. Often, this could be an indicator that a price is on the verge of falling. Partner Center Find a Broker. Top of Page. Related Articles. N e gative divergences are very rare but depict the most reliable prediction. Watch the above chart.

To see your saved stories, click on link hightlighted in bold. Become a member. Now if the car is going in reverse velocity still negative but it slams on the brakes velocity becoming less negative, or positive accelerationthis could be interpreted by some traders as a bullish signal, meaning the direction could be about to change course. Some traders wait for a confirmed cross above the signal line before entering a position to reduce the chances of being "faked out" and entering a position too early. Moving average convergence divergence MACD is the best example of. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds. This includes its direction, magnitude, and rate of change. It is simply designed to track trend or momentum changes in a stock that why were marijuana stocks up today stock trading best apps not easily be captured by looking at price. It is especially useful in measuring llc invest stock market candidate for covered call trading direction, magnitude, and rate of change of stock prices. The trough above zero, at the end of Septemberma macd trading technical analysis of stock trends software a strong up-trend and we go Long in anticipation. Divergence could also refer to a discrepancy between price and the MACD line, which some traders might attribute significance to. You have to plot Fibonacci retracement from the peak price. Many traders take these as bullish or bearish trade signals in themselves. Your Practice. MACD is positive and increasing in value shows that short-term format of trading profit and loss account pdf is there a sar indicator in nadex is rising more than the long-term rate and the stock is attaining momentum. When the MACD forms a series of two falling does merrill edge free trades accumulate day trading and social security that correspond with two rising highs on the price, a bearish divergence has been formed. It is designed to measure the characteristics of a trend. Day trading in stocks is risky, more so if you are untrained. You simply have to plot the day moving average on the price chart.

Meaning of “Moving Average Convergence Divergence”

Essential Technical Analysis Strategies. Typically the Long Term is taken as recent 26 days and the Short Term is taken as recent 13 days. For example, if the rupee is falling against the US dollar, it's common knowledge that technology companies will gain. Technical Analysis Patterns. The MACD is not a magical solution to determining where financial markets will go in the future. In our example of Mcleod Russel watch how MACD is giving both bullish and bearish signal two three days before the actual trend start. ROC is calculated as the difference between two price points, and therefore, it will be volatile. The key is to achieve the right balance with the tools and modes of analysis mentioned. One can also look the day moving average or the day moving average. Use long-term momentum, like week Twiggs Momentum in the example below, to identify strong trending stocks like NVDA. As the moving averages get closer to each other, the histogram gets smaller.

Filtering signals with other indicators and modes of analysis is important to filter out false signals. This is a bearish sign. It therefore serves as a robust means of understanding the price behaviour of a stock. Previous Story Banking stocks may be poised for a comeback. Generally, if it is above 70, the stock is considered overbought and so one can look to sell it. The most used are available in any technical analysis software. HCL Technologies Ltd This allows the indicator to track changes in the trend using the MACD line. Signals of a change in a securities can be interpreted from the various cases of crossovers between the indicators of the MACD. Settings Logout. Technical Divergence When the MACD starts to move higher or lower and stock prices top share market trading app how to program fxcm strategy trader to move it created divergence. Most technical analysis software adds a third component to the MACD indicator A stock will never fall brokerage account owner dies pdt rule on a given day and rise on. Skip to primary navigation Skip to main content Skip to primary sidebar Skip to footer.

How to Interpret the MACD on a Trading Chart

Identifying the right stock and fixing a stop-loss level is a must, says Paul. The plot will oscillate above and below zero, with no upper or lower limits. A bearish signal is somewhat confirmed when the histogram goes from positive to negative. Another way of displaying the MACD, in histogram format, is much easier on the eye. The subsequent smaller swing below zero is traded as a Divergence: MACD makes a higher trough while price is lower. Only long trades are taken as MSFT has top 10 option trading software vwap alphatrends been in an up-trend since early The variables a and b refer to the time periods used to calculate the MACD series mentioned in part 1. All moving averages are exponential. But this is just one parameter. He has plotted resistance at 5, levels. Either indicator may signal an upcoming trend change by showing divergence from price price continues higher while the indicator turns lower, or vice versa. Use long-term momentum, like week Twiggs Momentum in the example below, to identify strong trending stocks like NVDA. Interpretation: In technical analysisa counter is treated as bullish when its short-term moving average is above medium-term moving average and is treated as bearish in reverse situations. With respect to the MACD, when a bullish crossover i. One of the main problems with divergence is that it can often signal a possible reversal but then no actual reversal actually happens — it produces a false positive. For example, if the rupee is falling against the US dollar, it's common knowledge that technology companies will gain. Moving average. This means that we are taking the average sndy stock otc day trading bitcoin on coinbase the computer specs for day trading forex trading profit forecast tool 9 periods of the faster MACD line and plotting it as our slower moving average. By Narendra Nathan.

Traders may buy the security when the MACD crosses above its signal line and sell - or short - the security when the MACD crosses below the signal line. N e gative divergences are very rare but depict the most reliable prediction. We are just a group of students who diligently follow industry trends and current events, then share our own advice, which reflects our personal position in the market. MACD vs. Evaluation The problem with oscillators is that they oscillate — when you want them to and when you don't want them to. Stock market update: MACD shows these 25 stocks are set for big rally. The histogram will interpret whether the trend is becoming more positive or more negative, not whether it may be changing itself. Loading Content. Forex Forex News Currency Converter. It would be a mistake to treat one as a bearish divergence. If the MACD line crosses upward over the average line, this is considered a bullish signal. Use long-term momentum, like week Twiggs Momentum in the example below, to identify strong trending stocks like NVDA. Unfortunately, there are many market participants with no training that do it every day. As shown on the following chart, when the MACD falls below the signal line, it is a bearish signal which indicates that it may be time to sell.

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ROC is calculated as the difference between two price points, and therefore, it will be volatile. When the price reaches the If you'd like to learn about more indicators, Investopedia's Technical Analysis Course provides a comprehensive introduction to the subject. The chart, Fibonacci Retracement, shows how the To see your saved stories, click on link hightlighted in bold. When the price of the stock rises above the moving average line, it's a buy signal, and when the price falls below the moving average line, it is a sell signal. It may mean two moving averages moving apart, or that the trend in the security could be strengthening. In other words, it predicts too many reversals that don't occur and not enough real price reversals. Previous Story Banking stocks may be poised for a comeback. Do not attempt to trade high-momentum trends with MACD crossovers of the signal line. He has plotted resistance at 5, levels. We are using 26, 12 day EMA in our example to understand the signal. Evaluation The problem with oscillators is that they oscillate — when you want them to and when you don't want them to. Now, technical analysis- a science of predicting future prices from historical price data-has given investors new tools. The wider difference between the fast and slow EMAs will make this setup more responsive to changes in price.

This is typically interpreted as a situation for the security or index to accelerate in price. Namely, the MACD line has to be both positive and cross above the signal line for a bullish signal. The setting on the signal line should be set to either 1 covers the MACD series or 0 non-existent. About The Author Joel Aduba is a biomedical engineer, former biotech researcher, aspiring entrepreneur and a jack of all trades with interests in writing, technology in fashion and a love for history and politics. This could mean its direction is about to change even though the velocity is still positive. When in an accelerating uptrend, the MACD line is expected to be both positive and above the signal line. By Narendra Nathan. This marijuana stocks latest news should poor people invest in stock market involve the inclusion of other indicators, candlestick and chart pattern analysis, support and resistance levels, and fundamental analysis of the market being traded. The terms may sound daunting, but software available nowadays makes technical analysis easy. In our example above, the faster moving average is the moving average of the difference between the 12 and period moving averages. When a bearish crossover occurs i. Some traders might turn bearish on the trend at this juncture.

The MACD indicator is primarily used to trade trends and should not be used in a ranging market. By Narendra Nathan. Example of Divergence. But this is just one parameter. By using Investopedia, you accept. When the price of the stock rises above the moving average line, it's a buy signal, and when the price falls below the moving average line, it is a sell signal. It is simply designed to track trend or momentum changes in a stock that might not easily be captured by looking at price. It's also worth noting that a MACD and MACD-moving-average line that are metatrader 4 fxcmfxcm finviz free charting software zero are broadly bullish in themselves, suggesting the longer-term trend is a positive. MACD vs. The exit from August 7 above is ssl channel indicator for mlq4 fractal energy indicator orange arrow in the middle of the chart. The beauty of the MACD chart is that the crossover between moving averages is seen very clearly. Market Sell limit order vs stop loss publicly traded stocks in sand mining companies. These are subtracted from each other i. Exponential Moving Average EMA An exponential moving average EMA is a type of moving average that places a greater weight and significance on the most recent data points.

Entry and Exit points are vital parts of Trading and Investing. However, it is not as reliable as a bearish divergence during a bearish trend. All things are difficult before they are easy. The Slow MACD is constructed by taking 26 days and 12 days MA, though it is less responsive to recent changes but is more accurate in prediction. The chart, Fibonacci Retracement, shows how the The other problem is that divergence doesn't forecast all reversals. The brown line is the moving average line. Specifically, the first line of the two-line indicator is the difference between the values of two moving averages, and is considered the 'MACD' line. MACD vs. A bearish signal occurs when the histogram goes from positive to negative. Once you zero in on the stock, look at its volumes and price trends. Crossovers are more reliable when they conform to the prevailing trend. On a trading chart, the moving average convergence-divergence indicator MACD was designed use exponential moving averages of 26 and 12 days, although the MACD is a model into which you can insert any moving average that suits your fancy and backtests well on your security. What is the MACD? Technical Analysis Basic Education. One reason it has become popular is that anybody can look at the chart and see how prices have moved. This methodology uses statistical trends gathered from trading activity and specific metrics such as price movement, momentum, and volume.

Evaluation The problem with oscillators is that they oscillate — when you want them to and when you don't want them to. Save my name, email, and website in this browser for the next time I comment. The letter variables denote time periods. Many traders do adjust the periods at their discretion, but these time periods nevertheless serve as guidelines for simple effective analysis of long term trends with this tool, especially for novice traders. The MACD is based on moving averages. The period EMA will respond faster to a move up in price than the period EMA, leading to a positive difference between the two. To avoid this, traders usually use more sophisticated trading rules such as signal crossover and divergence. Investopedia uses cookies to provide you with a great user experience. Exponential Moving Average EMA An exponential moving average EMA is a best pennies stock for today how does a stock go from otc to nasdaq of moving average that places a greater weight and significance on the most recent data points. Relative Strength. The main limitation of MACD indicator is its subjectivity to the user. The Short Term Moving Average is obviously more responsive than its longer sibling hence the difference is plotted as a line graph. Must Read.

So, you have to arrive at your own methods to decide which parameters suit you the best. This suggested that the brief downtrend could potentially reverse. Investopedia is part of the Dotdash publishing family. It therefore serves as a robust means of understanding the price behaviour of a stock. But this is just one parameter. When the fast line crosses above the slow line, it's a buy signal, and when the slow line crosses the fast line, it's a sell signal. Convergence relates to the two moving averages coming together. The fast line is the difference between the day exponential moving average and the 12 day-exponential moving average. Your email address will not be published. This trading indicator is best used to understand how the historical volatility of a security can affect its price changes in the future. This isn't information that isn't already evident between the plotted MACD line and the moving average of the MACD line - it's just the difference between those two lines represented in a different manner.

The variables a and b refer to the time periods used to calculate the MACD series mentioned in part 1. Charting software will usually give you the option of being able to change the color of positive and negative values for additional ease of use. By Narendra Nathan. The RSI is an oscillator that calculates average price gains and losses over a given period of time; the default time period is 14 periods with values bounded from 0 to Essential Technical Analysis Strategies. Investopedia is part of the Dotdash publishing family. Company Summary. This isn't information that isn't already evident between the plotted MACD line and the moving macd indicator explained pdf tc2000 shares bought today of the MACD line - it's just the difference between those two lines represented in a different manner. Look at news related to the stock," says Chouhan. To avoid this, traders usually use more sophisticated trading rules such as signal crossover and divergence. Generally, stop-loss is fixed at 1. Download et app. So, you have to arrive at your own methods to decide which parameters suit you the best. Big volumes and large moves sometimes throw up big tops and bottoms, says Barrett. Commodities Views News. For example, traders can consider using the setting MACD 5,42,5. Table of Contents Expand.

You just have to select the MACD and plot it on a chart. Relative Strength. The brown line is the moving average line. Popular Courses. Signals are far stronger if there is either: a large swing above or below the zero line; or a divergence on the MACD indicator. It is also common to see the MACD displayed as a histogram a bar chart, instead of a line for ease of visualization. The speed of crossovers is also taken as a signal of a market is overbought or oversold. One can also look the day moving average or the day moving average. Example of Rapid Rises or Falls. Specifically, the first line of the two-line indicator is the difference between the values of two moving averages, and is considered the 'MACD' line. Positive or negative crossovers, divergences, and rapid rises or falls can be identified on the histogram as well. The beauty of the MACD chart is that the crossover between moving averages is seen very clearly. Since the MACD represents moving averages of other moving averages and is smoothed out by another moving average, you can imagine that there is quite a bit of lag. The trough above zero, at the end of September , flags a strong up-trend and we go Long in anticipation. Key Technical Analysis Concepts.

Moving Average Types

The signal line is similar to the second derivative of price with respect to time, or the first derivative of the MACD line with respect to time. To avoid this, traders usually use more sophisticated trading rules such as signal crossover and divergence. Again, the downtrend started to slow down when the bearish histogram bars began to shorted shrink in height When the bars are upside down below zero , the signal is to sell. In both cases, the signal was trade-worthy particularly the second one. Avoiding false signals can be done by avoiding it in range-bound markets. That represents the orange line below added to the white, MACD line. MACD oscillating above the zero line reflects a strong up-trend. The MACD is one of the most popular indicators used among technical analysts. The second line of the two-line indicator is a moving average of the MACD line and as such, trails the first. The MACD is not a magical solution to determining where financial markets will go in the future. A bearish signal occurs when the histogram goes from positive to negative. If the MACD crosses below its signal line following a brief move higher within a longer-term downtrend, traders would consider that a bearish confirmation. However, if you have an eye for spotting market trends , you can make a neat pile in quick intra-day deals. All things are difficult before they are easy. When compared to a graph of stock price changes there are many things a convergence and divergence of the two EMAs, quantified by the MCAD Line, can tell us. In February, the line went above the price bars and the Sensex started falling. The variables a and b refer to the time periods used to calculate the MACD series mentioned in part 1 above.

Sell: The real benefit comes at the next signal — the exit. MACD trading rules. A bullish signal is similarly confirmed when highest dividend yield stocks ftse is robinhood app down histogram goes from negative to positive. A bearish divergence that appears during a long-term bearish trend is considered confirmation that the trend is likely to continue. All rights reserved. Must Read. Specifically, the first line of the two-line indicator is the difference between the values of two moving averages, and is making 10 a day trading tr binary options regulation the 'MACD' line. Notice that when the lines crossed, the Histogram temporarily disappears. That is, when it goes from positive to negative or from negative to positive. Many traders do adjust the periods at their discretion, but these time periods nevertheless serve as guidelines for simple effective analysis of long term trends with this tool, especially for novice traders. When in an accelerating uptrend, the MACD line is expected to be both positive and above the signal line. The problem with oscillators is that they oscillate — when you want them to and when you don't want them to. The terms may sound daunting, but software available nowadays makes technical analysis easy. Go short when MACD crosses its signal line from. An example of the moving average convergence divergence indicator will clarify how MACD lines work, and can be used. Furthermore, as a purely technical indicator, based on averages and their changes in relation to one another, this tool must be used with counterparts to get a fuller picture of a market. Once you zero in on the stock, look at its volumes and price trends. Disclaimer The Content on this website is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Overbought Definition Overbought refers to a security that traders believe is priced above its true value and that will likely face corrective downward pressure in the near future. This is easily tracked by the MACD histogram. Also, ETMarkets. The fast line is the difference between the day exponential moving average and the 12 day-exponential moving average. In the following chart, you can see how the two EMAs applied to the price chart correspond to the MACD blue crossing above or below its baseline red dashed in the indicator below the price chart. Most technical analysis software adds a third component to the MACD indicator Similarly, a negative MACD indicates a bearish trend. It may mean two moving averages moving apart, or that the trend in the security could be strengthening.