What is MACD in Forex?
MACD
Forex Trading Glossary
Quick Answer: MACD (Moving Average Convergence Divergence) shows the relationship between two moving averages, identifying trend direction, momentum, and potential reversals.
What is MACD?
The Moving Average Convergence Divergence (MACD) indicator displays the relationship between two EMAs, typically the 12- and 26-period. It consists of the MACD line, signal line, and histogram.
MACD Signals
- Crossovers: MACD above the signal line can indicate bullish momentum.
- Zero-line cross: Moves above/below zero highlight trend direction.
- Divergence: MACD diverging from price suggests momentum shifts.
- Histogram analysis: Shows acceleration or deceleration of momentum.
Related Terms
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