Moving Average Convergence Divergence (MACD)
Author: Sidharth
Moving Average Convergence Divergence (MACD) is a method used for technical analysis. MACD is a trend-following momentum indicator that can showcase the relationship between two moving averages.
The MACD is often calculated by subtracting the 26-day EMA from 12-day EMA (Exponential Moving Average). MACD can also be used to determine the price momentum of cryptocurrencies.
The MACD predominantly comprises three different parts. The MACD helps to detect whether the market is following a bullish or bearish trend. The signal line is the EMA for the MACD line, and the Histogram showcases the differences between the signal and MACD line.
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