Wednesday, July 2, 2008

Moving Average Convergence Divergence (MACD)




This indicator was generated by Gerald Appel as the difference between two exponentially smoothed averages (EMA).

It’s one of the simplest and most reliable indicators available.

Although there are three moving averages mentioned you will only see two lines one fast and one slow, if the faster signal line crosses above the slower line then a buy signal is generated and vice versa.




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