MACD’s Color Switch Trading Strategy.

Creating the MACD Color Switch Trading Strategy.

Sofien Kaabar, CFA

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The MACD is famous for being a trend-following strategy and also for detecting divergences which may hint at a possible exhaustion and thus a contrarian signal. We can also trade the signal method of the MACD. In this article, we will try out another method which is the color switch, a technique borrowed from a cousin…

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