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MACD
Moving Averages Convergence and Divergence
Convergence 2 MA move toward each other
Divergence 2 MA move away each other
12 Day EMA --- Short term
26 Day EMA --- Long term
26 EMA - 12 EMA
Moving Averages Convergence and Divergence
Convergence 2 MA move toward each other
Divergence 2 MA move away each other
12 Day EMA --- Short term
26 Day EMA --- Long term
26 EMA - 12 EMA
Note
"If if the short term (line) is higher than the long term (line) trend upward
*Short term is always more reactive to current market price
*Positive sign there is positive momentum
*MACD is Lagging technical indicator (means it happen already)
*MACD Center is 0
"If if the short term (line) is higher than the long term (line) trend upward
*Short term is always more reactive to current market price
*Positive sign there is positive momentum
*MACD is Lagging technical indicator (means it happen already)
*MACD Center is 0
*MACD signal line 9 day of EMA
*Histogram line Bars
Limitation of MACD it may false positive
Effective only in uptrend not in sideways
You can also use
3, 10, 16 most effective according to other trader
12, 26, 9
*Histogram line Bars
Limitation of MACD it may false positive
Effective only in uptrend not in sideways
You can also use
3, 10, 16 most effective according to other trader
12, 26, 9
