Moving Average Convergence/Divergence - A technical analysis indicator developed in the 1960s by Gerald Appel which uses moving averages to indicate buy and sell opportunities. In very simple terms, it works like this:Take the difference between the 12 day moving average and the 25 day moving average over a period, and plot the figures on a chart.Draw the 9 day moving average of the previous calculation for the same period on the same chart. (known as the "trigger line")Sell when the first line falls below the trigger line, and buy when it rises above.MACD works best on volatile stocks, however an analyst would take other indicators into account before making a decision.
Moving Average Convergence/Divergence : a technical analysis indicator developed in the 1960s by gerald appel which uses moving averages to indicate buy and sell opportunities. in very simple terms, it works like this:take the difference between the 12 day moving average and the 25 day moving average over a period, and plot the figures on a chart.draw the 9 day moving average of the previous calculation for the same period on the same chart. (known as the "trigger line")sell when the first line falls below the trigger line, and buy when it rises above.macd works best on volatile stocks, however an analyst would take other indicators into account before making a decision.