MACD
Difference between two moving averages
What it is
Moving Average Convergence Divergence plots the gap between a fast and a slow EMA, plus a signal line and a histogram of the difference between them.
What it may suggest
An expanding histogram suggests momentum building in that direction; crossings are often used as a shift marker.
Where it fails
Lagging by construction, since it is built from averages of past price. In ranges it crosses constantly, producing far more signals than there are moves.
Also called macd histogram, moving average convergence divergence.
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