MACD

Indicator

What is MACD?

MACD Indicator is a Momentum that mainly consists of 2 lines. The MACD Line and the Signal Line. The faster  line is the MACD Line and the smoother line is the Signal line.

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MACD Line

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Signal Line

Bullish Indication?

When the MACD Line crosses above the Signal Line, it is an indication of bullish momentum.

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Bearish Indication?

When the MACD Line crosses below the Signal Line, it is an indication of bearish momentum.

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How are the lines formed?

MACD = EMA 9 - EMA 26 (EMAs of Price) Signal Line = EMA 9 of the MACD Line

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