LETS LEARN TOGETHER:

The MACD indicator (Moving Average Convergence Divergence) can safely be said to be the most important indicator that exists and the one that is most used today throughout the world, whether for trading in the cryptocurrency market.

The MACD indicator is made up of two lines and some bars.

✅The blue line is called MACD and is made up of two moving averages that are generally set exponentially in 12 and 26 periods. By subtracting between both averages, we have the MACD line as a result.

✅The orange line is called Signal and is the calculation of another 9-period exponential moving average. This line serves as a “signal” to position yourself to buy or sell when it crosses the MACD or also when it crosses the zero line.

✅The purple bars are called MACDh because they are the difference between the Signal line and the MACD line represented in the form of histogram bars.