There are several calculations involved in the creation of the total (MACD) indicator, all involving the use of exponential moving averages. An EMA is calculated as follows: Calculate the simple ...

These breakouts or breakdowns of the bands can be used as trade entry points. This indicator shows the difference between two exponential moving averages (a 9-day EMA subtracted from a 26-day EMA ...

Reviewed by Charles Potters Fact checked by Vikki Velasquez What Is the Moving Average Convergence Divergence (MACD)? The moving average convergence divergence (MACD) is a popular technical momentum ...