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:
2. Signal line
3. actual cross of the MA
Combine with your other indicators for nang makasiguro purposes.
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