The definition is Moving Average Convergence Divergence.
MACD reflects ( 12 day and 26 day period. default)
can be altered depending on your time frame.
If moving averages are touching, MACD lies on the 0 line
when 12 day MA is above the 26 day MA it is considered bullish, You'll see it in positive numbers
In reverse, if the MA26 is below the 12 day MA, it is considered bearish. You'll see it in negative.
Signal line - Exponential moving ave placed next to the MACD.
Histogram - reflects difference bet MACD and signal line.
gives early warning on a breakdown of break up
Things to consider:
1. Histograph
2. Signal line
3. actual cross of the MA
Combine with your other indicators for nang makasiguro purposes.
Disclaimer:
I posted my financial adventure like this here because I noticed that after the 2,000th mark, nobody reads my posts anyway. This article does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product and stocks.I'm an independent trader and not affiliated to any financial institute (Not anymore). I encourage you to do independent research for your judgment with respect to the matter contained from this site. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.
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