Chart – MACD

It is the English acronym of Moving Average Convergence / Divergence, one of the most widely used oscillators in technical analysis. It allows to identify different types of signals.

How to use the MACD:

The presence of two lines makes it possible to exploit this indicator in different ways. First of all, as with other indicators, the MACD is compared to the zero line: when it cuts this line upwards, it will generate a bullish signal; when it cuts down this line, a bearish signal will be generated instead.

A second method is to use the 9-day exponential moving average as a simple moving average. When the MACD cuts the exponential moving average up to 9 days, it will generate a bullish signal; when the MACD cuts down the exponential moving average and 9 days, a bearish signal will be generated.