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DipSway API

Indicator Used

What is the MACD Indicator?

The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.

It is one of the most widely used tools in technical analysis. It consists of two exponential moving averages (EMA), typically the 12-day and 26-day EMAs for the MACD line, and the signal line, which is usually a 9-day EMA of the MACD line. The MACD line is created by subtracting the 26-day EMA from the 12-day EMA, and the signal line is used to generate trading signals. When the MACD line crosses above the signal line, it’s considered a bullish signal, suggesting that it might be a good time to buy. Conversely, when the MACD line crosses below the signal line, it’s seen as a bearish signal, indicating a potential time to sell.