|
|
| The Moving Average Convergence Divergence (MACD) is a popular technical indicator used in financial markets to identify potential trends and generate buy and sell signals. The MACD indicator is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The result is a single line known as the MACD line. A 9-period EMA of the MACD line is then plotted as a signal line. The difference between the MACD line and the signal line can be used to identify changes in trends and generate trading signals. When the MACD line crosses above the signal line, it is considered a bullish signal, indicating that it may be a good time to buy. Conversely, when the MACD line crosses below the signal line, it is considered a bearish signal, indicating that it may be a good time to sell. |
|
|
MACD
|
Action |
| MACD(12,26,9) Bullish Divergence |
|
| MACD(12,26,9) Crossed Above Signal Line |
|
| MACD(12,26,9) Crossed Above Zero |
|
| MACD(12,26,9) Above Signal Line |
|
| MACD(12,26,9) Above Zero |
|
| MACD(12,26,9) Bearish Divergence |
|
| MACD(12,26,9) Crossed Below Signal Line |
|
| MACD(12,26,9) Crossed Below Zero |
|
| MACD(12,26,9) Below Signal Line |
|
| MACD(12,26,9) Below Zero |
|
 MACD - Technical Analysis from A to Z
The MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship
between two moving averages of prices. The MACD is the difference between a 26-day and 12-day exponential moving
average. A 9-day exponential moving average called the "signal" line is plotted on top of the MACD
to show buy or sell opportunities. The MACD proves most effective in wide-swinging trading markets. There are three
popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.
|
|
|
| |
