MACD

Moving Average Convergence Divergence indicator.

Overview

The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator. It shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.

Interpretation

The MACD is interpreted as follows:

  • When the MACD line crosses above the signal line, it gives a bullish signal, indicating that it may be a good time to buy.

  • When the MACD line crosses below the signal line, it gives a bearish signal, indicating that it may be a good time to sell.

Indicator Triggers:

MACD cross up/down level

Signal line cross up/down the MACD line

In zone

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