The most critical problem facing the visual investor is knowing when to emphasize each class of indicator. During a strong trending period, moving averages will outperform most other indicators. During choppy market periods, when prices swing back and forth in an essentially trendless manner, oscillators are much better than moving averages. Fortunately, there is one indicator that combines the best of both worlds in the sense that it is both a trend-following system and an oscillator. It employs moving averages to generate trend-following signals, but also helps to determine when a trend is overbought or oversold. It is also helpful in spotting divergences, one of the greatest strengths of an oscillator. After showing you how to use it, w....moving average convergence divergence