this indicator was created by Gerald Appel on the late 1970s. It consists of two exponential moving average which help in measuring security movement momentum. MACD line used two exponential moving averages based on closing price with different periods, where one average used a longer-term period, whereas the other used shorter time period. Generally, MACD used 12/26 period, where computation used is 26 days for a longer period, and 12 days exponential moving average for short period. Signal line is made by using 9-day-exponensial moving average from the MACD values, as can be seen from following formula:
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