What is the MACD Indicator?
The MACD indicator is a trend indicator and a momentum indicator that shows the relationship between prices for two different moving averages. Basically, the 26-day exponential moving average is obtained by removing the 12-day exponential moving average. The MACD indicator uses an in-line signal line and is used as a trigger for sales signals. The MACD demonstration was developed by Gerald Appel in the 1970s.
How is the MACD INDICATOR INTERPRETED?
The use of 3 of the MACD indicators is an important and widely used interpretation method.
Intersections: When the MACD indicator falls below the signal line, a signal may indicate that a signal has arrived or that the sales clock has arrived. If the MACD indicator rises above the signal line, this upward signal is generated and the appearance of reception levels is marked. Many investors are waiting for the intersection level to be able to avoid false signals.
Disaggregation: If the price of a financial product differs from the MACD indicator, this current trend is over.