MACD

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MACD Definition

Moving Average Convergence Divergence. A trend indicator that shows the relationship between two moving averages of prices.

The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.

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