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The Moving Average Convergence Divergence (MACD) Definition
Description
The Moving Average Convergence Divergence (MACD) is a widely used technical indicator in trading that assists investors and traders in spotting price trends, assessing momentum, and pinpointing optimal moments for entering or exiting trades.
To calculate the MACD, the 26-period EMA (long-term) is subtracted from the 12-period EMA (short-term), creating the MACD line. Additionally, a nine-day EMA of the MACD line, known as the signal line, is plotted over the MACD line. This signal line functions as a trigger for buy or sell signals, further aiding traders in their decision-making processes.

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