definition of MACD


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MACD
Abbreviation for Moving Average Convergence Divergence. Indicator developed by Gerald Appel, calculated by subtracting the 26-period exponential moving average of a security from its 12-period exponential moving average. By comparing moving averages, MACD displays trend following characteristics, and by plotting the difference of the moving averages as an oscillator, MACD displays momentum characteristics.










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