Educational Post
Moving Average Convergence Divergence (MACD)
MACD is a momentum indicator which shows the relationship between the two moving averages, i.e. 26 EMA and 12 EMA.
It consists of the MACD line and the signal line. The MACD line is the difference between the 26 EMA and 12 EMA, and the signal line is 9 EMA.
The buying signal is generated by MACD when the MACD line crosses the signal line from below, and the selling signal is generated when the MACD line crosses the signal line from above, as shown.
