MACD Indicator: Formula, Components and Interpretation
Technical analysis involves studying price movements to understand how a market is behaving. The MACD Indicator is one of the tools used for this purpose. Its name stands for Moving Average Convergence Divergence, and it focuses on the changing relationship between two exponential moving averages. By presenting this relationship through lines and bars, the indicator helps traders examine momentum and identify changes in the pace of price movement.
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