Moving Average Convergence Divergence — a trend-following momentum indicator.
Calculated as 12-day EMA minus 26-day EMA, with a 9-day EMA "signal line." Bullish cross: MACD crosses above signal line. Bearish cross: MACD crosses below. Histogram shows distance between MACD and signal — narrowing histogram precedes crosses.
Moving Average Convergence Divergence — a trend-following momentum indicator. Calculated as 12-day EMA minus 26-day EMA, with a 9-day EMA "signal line." Bullish cross: MACD crosses above signal line. Bearish cross: MACD crosses below. Histogram shows distance between MACD and signal — narrowing histogram precedes crosses.
In technical analysis, MACD is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Calculated as 12-day EMA minus 26-day EMA, with a 9-day EMA "signal line." Bullish cross: MACD crosses above signal line. Bearish cross: MACD crosses below.
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