What is MACD ?
The Moving Average Convergence Divergence (#MACD ) is a trend-following momentum indicator that helps traders and analysts identify potential buy and sell signals in an asset's price chart.
1. MACD Line (Blue Line): This is the difference between the 26-period Exponential Moving Average (EMA) and the 12-period EMA. The MACD line is more responsive to short-term price changes.
2. Signal Line (Orange Line): This is a 9-period EMA of the MACD line. It's used to generate trading signals.
3. Histogram: The histogram is the vertical bars that represent the difference between the MACD line and the signal line. It provides a visual representation of the MACD's divergence from the signal line.
