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technical_indicators:moving_average_convergence_divergence_macd [2019/09/07 00:20] betseyp [MACD Bearish Signal Line Cross] |
technical_indicators:moving_average_convergence_divergence_macd [2023/07/11 21:00] jayanthi [Introduction] |
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| ====== MACD (Moving Average Convergence/Divergence Oscillator) ====== | ====== MACD (Moving Average Convergence/Divergence Oscillator) ====== | ||
| - | ===== Introduction ===== | + | ===== What Is the Moving Average Convergence/Divergence Oscillator? ===== |
| Developed by Gerald Appel in the late seventies, the Moving Average Convergence/Divergence oscillator (MACD) is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, [[:technical_indicators:moving_averages|moving averages]], into a momentum oscillator by subtracting the longer moving average from the shorter one. As a result, the MACD offers the best of both worlds: **trend following and momentum.** The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels. | Developed by Gerald Appel in the late seventies, the Moving Average Convergence/Divergence oscillator (MACD) is one of the simplest and most effective momentum indicators available. The MACD turns two trend-following indicators, [[:technical_indicators:moving_averages|moving averages]], into a momentum oscillator by subtracting the longer moving average from the shorter one. As a result, the MACD offers the best of both worlds: **trend following and momentum.** The MACD fluctuates above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate signals. Because the MACD is unbounded, it is not particularly useful for identifying overbought and oversold levels. | ||