[2.2.2] Moving Average Convergence/Divergence (MACD)
The Moving Average Convergence/Divergence was created by Gerald Appel in the 1960’s.
The MACD is the difference between two different Exponential Moving Averages. The two most common EMA’s used are 12, and 26.
As mentioned before,
we can take Exponential Moving Averages of data other than the stock [12].
Here, the signalof the MACD is the 9 day EMA of the MACD itself