definition of Moving Average Convergence Divergence


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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, Moving Average Convergence Divergence displays trend following characteristics, and by plotting the difference of the moving averages as an oscillator, Moving Average Convergence Divergence displays momentum characteristics. (also known as MACD)










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