From the description means that each line represents the middle of the price range for For installation of the MAKD Indicator on the graphic, we will click the button Indicators at a toolbar and will select from the appeared menu Ocillators - MAKD
After that, there is a window where we can change properties of the exposed indicator. We can select the periods of three averages, a method, to fix a maximum and a minimum. We can change visual settings on the Colours tab.
In a method we specify the prices to which the indicator is used. These are the prices of closing, opening, maximum, minimum or their different sheaves.
MAKD, perhaps, is the most known indicator. It is also called " simplified stochastics". It allows to make its data simpler for the analysis, less delaying and more close of the price. At the same time, filtering false signals will be much worse.
The MAKD indicator was developed by Gerrard Appel and uses three moving averages in the construction.
On a graphics are lockated two lines: The first line (the MAKD line is called) is a difference between two exponential rounded averages.
The second line is its approximation averaged according to the specified parameters.
Signals are formed, as at any other classical oscillator.
To buy when the tool is resold. To sell when the tool is bought up.
Divergence or discrepancy. The divergence is a situation when the direction of movement of the price and technical indicators doesn't match. In classical literature, the divergence is considered the strong sign of a turn of a trend. On the monitor screen the divergence looks as follows.