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The MACD indicator is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below:
- : The 12-period exponential moving average (EMA) minus the 26-period EMA.
- : A 9-period EMA of the MACD.
- : The MACD minus the MACD Signal Line.
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The MACD indicator is an effective and versatile tool. There are three main ways to interpret the MACD technical analysis indicator, discussed in the next pages:
- Moving Average Crossovers
- MACD Histograms
- MACD Divergences
- Moving Average Crossovers
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