The moving average convergence divergence (MACD) uses two exponential moving...
a trading method based on the crossing of two exponential moving averages above and below a zero line. (A third moving average plots the difference between the other two and forms a single line.) The convergence and divergence of the moving averages generate buy and sell signals.
Used to determine overbought or oversold conditions in the market. The MACD line is the difference between the long and short exponential moving averages of the chosen commodity. The signal line is an exponential moving average of the MACD line. Signals are generated by the relationship of the two lines. As with RSI and Stochastics, divergence between the MACD and prices may indicate an upcoming trend reversal.
The crossing of two exponentially smoothed moving averages. They oscillate above and below an equilibrium line.
An indicator developed by Gerald Appel. By comparing moving averages, MACD displays trend following characteristics, and by plotting the difference of the moving averages as an oscillator, MACD displays momentum characteristics.
The MACD is used to determine overbought or oversold conditions in the market. The crossing of two exponentially smoothed moving averages that are plotted above and below a zero line. The crossover, movement through the zero line, and divergences generate buy and sell signals. Written for stocks and stock indices, MACD can be used for commodities as well. The MACD line is the difference between the long and short exponential moving averages of the chosen item. The signal line is an exponential moving average of the MACD line. Signals are generated by the relationship of the two lines.
