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Trading

MACD (Moving Average Convergence Divergence)

A trend-following indicator that shows the relationship between two moving averages of a price. When the MACD line crosses above the signal line, it suggests bullish momentum. When it crosses below, it suggests bearish momentum. Traders use it to spot potential trend reversals.

Example

The MACD just crossed bullish on the daily chart, which many traders interpret as a buy signal.

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