What is MACD? How to Use the Moving Average Convergence Divergence Indicator
What is MACD? The Moving Average Convergence Divergence (MACD) is a trend-following indicator that shows the relationship between two moving averages of a stock’s price. Traders use the MACD to identify changes in momentum.
The MACD line is the difference between the 12-day and 26-day EMAs.
The signal line is the 9-day EMA of the MACD line.
How to Trade Using MACD
MACD crosses above the signal line: A buy signal.
MACD crosses below the signal line: A sell signal.
MACD is particularly useful for identifying potential trend reversals.
Read more blogs click here
For investment in stock market please visit MONIL Corpus
Click
here to Open Demat and Trading Account
