MACD (moving average convergence divergence) plots the difference between two exponential moving averages, along with a signal line derived from the first. It is intended to show whether momentum is building or fading relative to recent movement. Because it is built from averages, it confirms what has already happened rather than anticipating it.
Forex glossary
MACD
Related term
Moving Average
A moving average plots the mean of the last set number of closing prices as a single line, smoothing short-term movement so direction is easier to see. A simple…
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