About MACD

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices.

The MACD Line is computed by subtracting the 26-day exponential moving average of the closing price from the 12-day exponential moving average of the closing price.

The MACD Signal Line is simply the 9-day exponential moving average of the MACD Line. When the MACD Line falls below the MACD Signal Line, it is a bearish signal, which indicates that it may be time to sell.

Conversely, when the MACD Line rises above the MACD Signal Line, the indicator gives a bullish signal, which suggests that the price is likely to experience upward momentum.