MACD Trading

Moving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a nine-period EMA of the MACD line.

A common strategy is to buy when the MACD line crosses above the signal line, as this indicates bullish momentum. Another strategy is to sell when it crosses below (which indicates bearish momentum).