It acts as a long term support line and at the same time it shows the potential parabolic acceleration. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. A technical correction occurs even when there is no evidence that the increasing price trend should cease. Technical Analysis - Definitions I. A French curve is a mathematical formula that works rather well on Gold and currencies.
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A penetration of the French curve would light up a caution sign.
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MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. MACD centerline crossovers occur when the faster moving average crosses the slower moving average and hereby generate a sell or a buy signal. Although they are objective, as with any other technical analysis method, they can be late or produce whipsaws. Point-and-Figure charts probably produce the most boring commentary for non-familiar readers to digest. It acts as a long term support line and at the same time it shows the potential parabolic acceleration.