MACD


The MACD indicator is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below:
  1. MACD: The 12-period exponential moving average(EMA) minus the 26-period EMA.
  2. MACD Signal Line: A 9-period EMA of the MACD.
  3. MACD Histogram: The MACD minus the MACD Signal Line.
MACD moving average convergence divergence
The MACD indicator is an effective and versatile tool. There are three main ways to interpret the MACD technical analysis indicator, discussed on the following three pages:
  1. Moving Average Crossovers
  2. MACD Histogram
  3. MACD Divergences
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