Compact mode
Moving Average Convergence Divergence (MACD) vs Simple Moving Average (SMA) vs Slow Stochastic
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)Simple Moving Average (SMA)- TrendSimple Moving Average (SMA) is a Trend type indicator. Indicators that help identify and confirm market trends
Slow StochasticAsset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*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.
Simple Moving Average (SMA)- Smooth Price MovementsSimple Moving Average (SMA) is known for Smooth Price Movements.
Slow Stochastic- Momentum MeasurementSlow Stochastic is known for Momentum Measurement.
Made In 🌍
The country or origin of the trading indicatorMoving Average Convergence Divergence (MACD)- 1960SMoving Average Convergence Divergence (MACD) was developed in 1960S. Trading indicators developed during a decade of economic growth and social change
Simple Moving Average (SMA)- United StatesSimple Moving Average (SMA) was developed in United States. Indicators developed in the USA, reflecting American trading principles
Slow Stochastic- United StatesSlow Stochastic was developed in United States. Indicators developed in the USA, reflecting American trading principles
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.For all*- LaggingIndicators that confirm trends after they have started
Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)Slow StochasticPopularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityFor all*- HighWidely used and trusted indicators in the trading community
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorMoving Average Convergence Divergence (MACD)- Developed by Gerald Appel
Simple Moving Average (SMA)- Oldest and most basic technical indicator
Slow Stochastic- Developed by George Lane in the 1950s
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
Simple Moving Average (SMA)- Even your grandma could calculate it
Slow Stochastic- Sometimes called the "snail" of indicators due to its slow-moving nature
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.For all*- DailyIndicators optimized for daily chart analysis, suitable for swing and position traders.
Moving Average Convergence Divergence (MACD)- WeeklyMoving Average Convergence Divergence (MACD) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
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 signalsFor all*- CrossoversIndicators that generate signals when one line crosses another, indicating trend changes
Moving Average Convergence Divergence (MACD)- DivergencesMoving Average Convergence Divergence (MACD) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Slow Stochastic- DivergencesSlow Stochastic generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Moving Average Convergence Divergence (MACD)Slow Stochastic
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorMoving Average Convergence Divergence (MACD)Simple 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.
Slow StochasticPurpose 📈
The primary purpose or application of the trading indicatorMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)- Trend IdentificationSimple Moving Average (SMA) is primarily used for Trend Identification. Tools that help traders recognize and confirm established market trends Click to see all.
- Support And ResistanceSimple Moving Average (SMA) is primarily used for Support And Resistance. Indicators that identify key price levels where trends may pause or reverse Click to see all.
Slow Stochastic
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorMoving Average Convergence Divergence (MACD)- Effective For Trend Identification
- Useful In Ranging Markets
Simple Moving Average (SMA)- Easy To UnderstandIndicators with straightforward concepts and interpretations
- Widely UsedPopular indicators trusted by many traders for market analysis
Slow Stochastic- Helps Identify Potential Reversal PointsSignals possible trend changes, helping traders spot entry and exit opportunities
- Effective In Ranging Markets
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.
Simple Moving Average (SMA)- Lag In Fast-Moving Markets
- May Miss Sudden Price ChangesIndicates that some indicators might not capture rapid market movements effectively. Click to see all.
Slow Stochastic
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)Slow StochasticEase of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)Slow StochasticVersatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)Slow StochasticCustomization 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.
Simple Moving Average (SMA)- 6The customization score for Simple Moving Average (SMA) is 6 out of 10.
Slow Stochastic- 6The customization score for Slow Stochastic is 6 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsMoving Average Convergence Divergence (MACD)Simple Moving Average (SMA)Slow Stochastic
Alternatives to Moving Average Convergence Divergence (MACD)
Directional Movement Index (DMI)
Known for Strength Of Price Movement
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is more reliable than Moving Average Convergence Divergence (MACD)
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is more customizable than Moving Average Convergence Divergence (MACD)
Exponential Moving Average (EMA)
Known for Smooth Price Movements
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is more reliable than Moving Average Convergence Divergence (MACD)
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is easier to use than Moving Average Convergence Divergence (MACD)
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is rated higher overall than Moving Average Convergence Divergence (MACD)
Keltner Channels
Known for Combining Moving Averages With Volatility
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is more reliable than Moving Average Convergence Divergence (MACD)
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is more customizable than Moving Average Convergence Divergence (MACD)
Hull Moving Average (HMA)
Known for Reducing Lag In Moving Averages
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is more reliable than Moving Average Convergence Divergence (MACD)
Percentage Price Oscillator (PPO)
Known for Relative Strength Measurement
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is more customizable than Moving Average Convergence Divergence (MACD)