Macd Indicator for beginners
Macd Indicator basically stands for Moving Average Convergence and divergence. Macd is invented by Gerald Appel in 1979. Macd is very popular and important indicator. Macd is leading indicator because it shows the signal before the trend is changed. Macd indicator is trend following indicator like Moving Average and Supertrend. it is very precise and accurate in trending stock market. it is combination of two different Exponential Moving Average. There are four Different Components Which are following. • First is Macd Line which is also called fast line. it's Green Line. Macd line is difference of (12 day EMA - 26 day EMA). • Second is Signal Line which is also called slow line. it's Red Line. Signal line is 9 day EMA of Macd Line. • Third is Zero Line which is also called Base Line or Centre Line. • Fourt is Histogram which are bars up and down of the Zero Line. Histogram is the difference of Macd Line and Signal Line. • Macd default sett...
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