MACD stands for Moving Average Convergence Divergence. It is a technical indicator exploited by traders to measure the momentum of a security’s price movement. A brief overview One of the most well-liked technical indicators in trading, invented by Gerald Appel in 1979, is the moving average convergence divergence (MACD), also known as the signal line. Traders worldwide appreciate the MACD’s simplicity and adaptability, owing to its capacity to be used as either a trend or momentum indicator. The MACD’s goal is straightforward: it compares an instrument’s 26-day and 12-day exponential moving averages (EMA). The 12-day EMA is the quicker of the two moving averages that make up the MACD, while the 26-day EMA is slower. Both moving averages rely on the period’s closing prices measured in their calculations. A nine-day EMA of the MACD itself is drawn on a MACD chart, and it serves as a trigger for buy and
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