Technical Analysis

What is MACD?

Moving Average Convergence Divergence: the 12-day EMA minus the 26-day EMA, with a 9-day signal line.

A bullish crossover happens when MACD crosses above its signal line; a bearish one when it crosses below. The histogram shows the gap between the two and shrinks before crossovers, which makes it an early warning of fading momentum.

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