Meaning of “Moving Average Convergence Divergence”The MACD derives its name from the moving averages it’s based on plus how they act.Convergence relates to the two moving averages coming together. This might be interpreted as confirmation that a change in trend is in the process of ...
lagging indicators are converted into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The result is a line that oscillates above and below zero, without any upper or lower limits. Like many indicators we use, it is a centered oscillator, meaning ...
meaning it looks at the last 26 and 12 days worth of data. The resultant chart oscillates around zero, without preset bounds in either upper or lower directions. In addition to the difference between the averages,
MACD is called exponential smoothing, which is derived from the double moving average. The moving average line subtracts the slow moving average. The meaning of MACD is basically the same as that of the double moving average, but it is more convenient to read. When MACD turns from negative ...