Online Trading Concepts

MACD

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:

  1. MACD: The 12-period exponential moving average (EMA) minus the 26-period EMA.
  2. MACD Signal Line: A 9-period EMA of the MACD.
  3. MACD Histogram: The MACD minus the MACD Signal Line.
MACD moving average convergence divergence

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:

  1. Moving Average Crossovers
  2. MACD Histogram
  3. MACD Divergences

Next Page - Moving Average Crossovers

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