Moving Average Convergence Divergence
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Finding Trend Changes with MACD
The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator. It shows the relationship between two moving averages of a stock's price. Technical analysts at SP RESEARCHVIA PVT. LTD. outline how to use MACD signals in swing trading.
How do traders use the MACD crossover signal?
A bullish crossover occurs when the MACD line crosses above the signal line, suggesting potential upward momentum. Conversely, a bearish crossover points to potential downward pressure.
Analyzing the MACD Histogram
The MACD histogram displays the distance between the MACD line and the signal line. Monitoring changes in the histogram's bars can help traders spot shifts in momentum before crossover signals occur.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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