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Components of MACD indicator:


1. The MACD Line is calculated by subtracting the Exponential Moving Average (EMA) of 26 periods from the EMA of 12 periods.
The equation: MACD = EMA(12) - EMA(26)
2. Signal Line: It is a 9-period simple moving average for the fast line.
3. The histogram: It is the difference between the fast line and the signal line. It appears as a vertical chart and indicates the strength of momentum.
How to use the #MACD indicator:
1. Bullish Crossover:
It happens when the express line intersects with the signal line from bottom to top.
Indicates a potential buying opportunity.
2. Bearish Crossover:
What happens when the highway intersects with the signal line from top to bottom
Refers to a potential selling opportunity.
3. Divergence
If the price is moving in a certain direction while the MACD is moving in the opposite direction, it may indicate a forthcoming trend reversal.. #Join Gate Post User Survey & Win $1,000# #Crypto Rebound: Which Coins Are You Watching?# #BTC Returns to $100K: What’s Next?#
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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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