Glossary

MACD

A momentum indicator derived from the difference of two exponential moving averages; tracks trend strength through signal line crossovers and the histogram.

The default setting is 12/26/9. A histogram shrinking above zero shows the advance is slowing; since crossovers lag, they aren't suitable for entries on their own.

Like RSI, it is more useful for spotting divergence and as a higher-timeframe momentum filter.

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