The MACD -Moving Average Convergence Divergence was created by Gerald Appel, and is based on the differences between two moving averages of different lengths, a slow and a fast moving average. The next line is called the Signal” line and is plotted as a moving average of the MACD. Then there is a MACD Histogram that plotted as a histogram of the difference between the MACD and the Signal Line that is optional.
This video will give you a good explanation of how the MACD indicator works and when you should use it.
Here is Bill’s video on the MACD.
This video shares an idea on when to use the MACD.
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