This is a derivative indicator from simple MACD. It shows the precise price, at which MACD will show line crossing and trend shifting. Also, this level is known one period ahead of time.You can constantly reassess your current position by looking at this studying a variety of timeframes. When you are in a trade, you have a feel for how much time you have for the trade to go your way by looking at the distance between the MACD Predictor line and the last price.
You can determine by the pressures that are currently bearing on the markets as well as those that will come to bear, where you want to put on a given trade.
- Fast EMA - period of the fast Moving Average.
- Slow EMA - period of the slow Moving Average.
- Signal EMA - period of the Signal line.