Moving average convergence/divergence (MACD, or MAC-D) spots trend reversals and other changes in it.
General info:
- MACD is a triple strategy which bases itself on the following settings – 12/26/9;
- The 12-day Exponential Moving Average (EMA) less the 26-day EMA forms the MACD line;
- A nine-day EMA of the MACD, called the “signal line”, acts as a trigger for buy and sell signals.
- Go long when MACD crosses its zero line from below. Go short when MACD crosses its signal line from above.
- Go long when MACD crosses its signal line from below. Go short when MACD crosses its signal line from above.
The following strategies are available:
- MACD LONG: triggered if MACD is <0 and the MACD line crosses the Signal Line from below;
- MACD SHORT: triggered if MACD is >0 and the MACD line crosses the Signal Line from above.
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