MACD
MACD stands for Moving Average Convergence Divergence. It's a type of tool used by people who like to buy and sell stocks and other investments. When people use MACD, they are looking for two things: whether the stock is likely to go up (called being "bullish") or down (called being "bearish").
To figure this out, they measure three different groups of numbers: 12-day averages, 26-day averages, and 9-day averages. They start by looking at the differences between the 12-day and 26-day averages. When the 12-day average is higher than the 26-day average, it means the stock is likely to go up. This is called a "bullish crossover".
When the 26-day average is higher than the 12-day average, it means the stock is likely to go down. This is called a "bearish crossover".
Finally, when people use MACD, they also look at the differences between the 9-day average and the moving average. When the 9-day average is higher than the moving average, it means that the stock is likely to go up. This is called a "bullish divergence".
When the moving average is higher than the 9-day average, it means the stock is likely to go down. This is called a "bearish divergence".
When people use MACD to help them decide if a stock is likely to go up or down, they watch for these signals and use them to decide when to buy and sell.
To figure this out, they measure three different groups of numbers: 12-day averages, 26-day averages, and 9-day averages. They start by looking at the differences between the 12-day and 26-day averages. When the 12-day average is higher than the 26-day average, it means the stock is likely to go up. This is called a "bullish crossover".
When the 26-day average is higher than the 12-day average, it means the stock is likely to go down. This is called a "bearish crossover".
Finally, when people use MACD, they also look at the differences between the 9-day average and the moving average. When the 9-day average is higher than the moving average, it means that the stock is likely to go up. This is called a "bullish divergence".
When the moving average is higher than the 9-day average, it means the stock is likely to go down. This is called a "bearish divergence".
When people use MACD to help them decide if a stock is likely to go up or down, they watch for these signals and use them to decide when to buy and sell.