MACD

The Moving Average Convergence Divergence ("MACD", pronounced "Mac-Dee") indicator is used by traders to identify trading signals. This indicator involves two intersecting lines plotted on an unlimited scale. The two lines are called the MACD line and Signal. The MACD line is the difference between two exponential moving averages, usually 12 and 26. The Signal line is usually a 9-period EMA of the MACD line. A buy signal is generated when the MACD crosses above the Signal line. A sell signal is generated when the MACD crosses below the Signal line.


MACD