MACD (Moving Average Convergence Divergence) The MACD indicator is one of the most popular tools of Technical Analysis. This tool shows the relaonship between two moving modes of a security's price. This MACD indicator is created to declare changes occur in direcon, strength and trend duraon of stock’s price. There is a formula for calculang MACD, for this calculaon 26-period exponenal moving averages subtracted from the 12- period exponenal moving averages (MACD calculaon done by subtracng the long-term EMA from short-term the EMA). The result which comes aſter this calculaon will be the MACD line. This MACD indicator of technical analysis is based on three parameters which named as the me constant of the three EMAs. The parameters of MACD are measured in days and the most commonly used value for MACD is 12, 26 and 9 days. The technical indicator of this is, MACD also works for finding its period seng from the old days, while Technical Analysis depends on the daily basis charts. This MACD indicator helps investors to understand when bullish or bearish price movement is increasing or decreasing. The MACD indicator can be understood in different ways, but the most commonly used ways are crossovers divergence and quick rise or fall. MACD is a momentum oscillator that acts as a best employed in the market of trading, where prices of trade market are moving in a parcular way. MACD Charts and MACD Line MACD charts are shown in two lines. The first line of chart designs the value of MACD and it’s called as MACD Line, it shows the distance between two EMA. MACD is calculated using three different series: 1. The MACD series is the difference between a long and short exponenal moving average. 2. The Average series is the EMA (Exponenal moving average) of the MACD series which described above. 3. And divergence series is the difference between the MACD and the average series. Trading by MACD indicator contains the following signals:  In MACD lines Crossover a trade is changing.  MACD histogram remaining above zero line shows market is bullish and below zero line shows the market is bearish.  MACD histogram flipping above the zero line gives confirmaon of current trend strength.  MACD histogram separates from chart prices shows signals of a coming difficulty. Some of the indicaon of MACD: 1. Signal Line Crossovers: It occurs when the MACD falls below the signal line. Traders oſten interpret MACD lines as a potenal buying opportunity, when it crosses above the signal line.