Double Your Profit With Moving Average Convergence/Divergence (MACD)
Macd is one of the most used studies in the technical analysis was introduced to the world of traders in 1960th and represent the difference between two exponential moving averages. This indicator is used to generate trading signals as well as to confirm a trend. What is the MACD indicator? Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. What is a MACD divergence? Moving average convergence divergence (MACD), invented in 1979 by Gerald Appeal, is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator. How does the MACD work? The MACD is just the difference between a 26-day and 12-day exponential moving average of closing prices (an exp...