MACD (Moving Average Convergence Divergence) shows the relationship between two EMAs. When the MACD line crosses above the signal line, it's bullish. The histogram shows the gap between them.
Answer: 12-day EMA minus 26-day EMA. MACD = 12-day EMA − 26-day EMA. A 9-day EMA of MACD is the signal line.
Answer: MACD line crosses above the signal line. When MACD crosses above its signal line, it's a buy signal — momentum is turning positive.
Answer: The difference between MACD and its signal line. The histogram bars show how far MACD is from its signal line — growing bars mean strengthening momentum.
Answer: Trending markets (up or down). MACD is a trend-following indicator — it works best when markets are in clear up or downtrends.
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