Compact mode
Moving Average Convergence Divergence (MACD) vs Moving Average Envelope vs Simple Moving Average (SMA)
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.Moving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Asset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*- StocksIndicators optimized for analyzing and predicting stock price movements in equity markets.
- ForexIndicators optimized for currency pair trading in the foreign exchange market.
Moving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Known for 💭
The unique selling point or distinguishing feature of the trading indicatorMoving Average Convergence Divergence (MACD)- Trend Strength And DirectionMoving Average Convergence Divergence (MACD) is known for Trend Strength And Direction.
Moving Average Envelope- Price Range VisualizationMoving Average Envelope is known for Price Range Visualization.
Simple Moving Average (SMA)- Smooth Price MovementsSimple Moving Average (SMA) is known for Smooth Price Movements.
Made In 🌍
The country or origin of the trading indicatorMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.For all*Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorMoving Average Convergence Divergence (MACD)- Developed by Gerald Appel
Moving Average Envelope- Envelopes typically use 2% above and below the moving average
Simple Moving Average (SMA)- Oldest and most basic technical indicator
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorMoving Average Convergence Divergence (MACD)- Even your grandma knows this one but still can't use it properly
Moving Average Envelope- Often mistaken for Bollinger Bands by novice traders
Simple Moving Average (SMA)- Even your grandma could calculate it
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.For all*Moving Average Convergence Divergence (MACD)Moving Average Envelope
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.For all*Signal Generation 📊
Describes the methods by which the indicator produces trading signalsMoving Average Convergence Divergence (MACD)- CrossoversMoving Average Convergence Divergence (MACD) generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes Click to see all.
- DivergencesMoving Average Convergence Divergence (MACD) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals Click to see all.
Moving Average EnvelopeSimple Moving Average (SMA)Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Moving Average Convergence Divergence (MACD)Moving Average Envelope
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)- BeginnersSimple Moving Average (SMA) is designed for Beginners. Simple and easy-to-understand tools for novice traders Click to see all.
- Long-Term InvestorsSimple Moving Average (SMA) is designed for Long-Term Investors. Emphasizes long-term trends and fundamental analysis, suited for buy-and-hold strategies Click to see all.
Purpose 📈
The primary purpose or application of the trading indicatorFor all*Simple Moving Average (SMA)
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorMoving Average Convergence Divergence (MACD)- Effective For Trend Identification
- Useful In Ranging Markets
Moving Average Envelope- Simple To Understand And Implement
- Helps Identify Overbought/Oversold ConditionsSignals when an asset may be overvalued or undervalued, helping traders spot potential reversals Click to see all.
Simple Moving Average (SMA)Cons 👎
Disadvantages or limitations of the trading indicatorMoving Average Convergence Divergence (MACD)- Can Produce False Signals In Choppy MarketsIndicators that minimize false signals in erratic or indecisive market conditions Click to see all.
- Lagging IndicatorIndicators that follow price action, potentially delaying trading signals in fast-moving markets. Click to see all.
Moving Average Envelope- Can Be Late In Signaling Trend ReversalsIndicators that excel in early trend reversal detection, minimizing delays in signaling changes Click to see all.
- Effectiveness Varies In Different Market Conditions
Simple Moving Average (SMA)
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Ease of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Versatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)Customization Score 🔧
A score representing the degree of customization available for the trading indicatorMoving Average Convergence Divergence (MACD)- 7The customization score for Moving Average Convergence Divergence (MACD) is 7 out of 10.
Moving Average Envelope- 7.5The customization score for Moving Average Envelope is 7.5 out of 10.
Simple Moving Average (SMA)- 6The customization score for Simple Moving Average (SMA) is 6 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsMoving Average Convergence Divergence (MACD)Moving Average EnvelopeSimple Moving Average (SMA)
Alternatives to Moving Average Convergence Divergence (MACD)
Slow Stochastic
Known for Momentum Measurement💯 is more reliable than Moving Average Convergence Divergence (MACD)
Directional Movement Index (DMI)
Known for Strength Of Price Movement💯 is more reliable than Moving Average Convergence Divergence (MACD)
🔧 is more customizable than Moving Average Convergence Divergence (MACD)
Exponential Moving Average (EMA)
Known for Smooth Price Movements💯 is more reliable than Moving Average Convergence Divergence (MACD)
💻 is easier to use than Moving Average Convergence Divergence (MACD)
⭐ is rated higher overall than Moving Average Convergence Divergence (MACD)
Keltner Channels
Known for Combining Moving Averages With Volatility💯 is more reliable than Moving Average Convergence Divergence (MACD)
🔧 is more customizable than Moving Average Convergence Divergence (MACD)
Hull Moving Average (HMA)
Known for Reducing Lag In Moving Averages💯 is more reliable than Moving Average Convergence Divergence (MACD)