The MACD indicator is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below:
- MACD: The 12-period exponential moving average (EMA) minus the 26-period EMA.
- MACD Signal Line: A 9-period EMA of the MACD.
- MACD Histogram: The MACD minus the MACD Signal Line.
The MACD indicator is a versatile tool. There are three main ways to interpret the MACD technical analysis indicator, discussed on the following three pages:
Next Page - Moving Average Crossovers
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