Trading Strategies

Moving Average Convergence Divergence

Definition

What is Moving Average Convergence Divergence?

A momentum indicator derived from the relationship between two exponential moving averages.

Example in practice

A trader watches for changes in the MACD line and signal line.

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The tendency of assets with strong recent performance to continue outperforming for a period.

A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

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