MACD

What is MACD? 

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. 

Explanation

The MACD is calculated by subtracting the 26-period EMA from the 12-period EMA, with the result plotted alongside a 9-day EMA (signal line).

Practical Example of MACD

ONE-SIGNAL integrates MACD into its analysis tools to help traders identify buy and sell signals based on momentum shifts.

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