   
|
|
|
|
MACD
|
MACD, which stands for Moving Average Convergence Divergence, is a technical indicator designed to compare price fluctuations of stocks and futures. Specifically, MACD derives data by calculating the relationship between two exponential moving price averages. By plotting 12 and 26 day exponential moving averages, and then contrasting the two, MACD helps forecast market momentum on what’s called a signal line. Hence, various positions along MACD signal line signify bullish or bearish market propensities. Divergences, crossovers, and dramatic rises are some of the MACD readings of market trends, through which MACD sets up buy and sell guide posts. An oscillator based method, MACD was developed by Gerald Appel. As with all other market indicators, MACD is best utilized in combination with other technical indicators.
Rate this MACD definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
