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What is MACD Indicator? episode artwork

Jun 13, 2020 4 min

What is MACD Indicator?

from Stock Pathshala Hosted by Stock Pathshala

This is an indicator of momentum which follows the trend. It shows the correlation between the moving averages of the prices of two securities. To calculate MACD (Moving Average Convergence Divergence), EMA of the 26th day is subtracted from the EMA of the 12th day. EMA (Exponential Moving Average) also known as Exponential Weighted Moving Average (EWMA), focuses on adding weight in current information. The answer obtained from the calculation forms a MACD line. For more, download our stock market education app - https://bit.ly/34us7OL

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What is MACD Indicator?

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