MACD

Definition

Difference between two EMAs, measuring trend direction, strength and momentum shifts.

Formula

DIF=EMA(C,12)−EMA(C,26); DEA=EMA(DIF,9); Histogram=(DIF−DEA)×2 (×2 is the Chinese TongDaXin/THS convention; international platforms StockCharts/TradingView do not multiply by 2, i.e. DIF−DEA)

Default parameters

{
  "fast": 12,
  "slow": 26,
  "signal": 9
}

How to read it

DIF crossing above DEA = golden cross (buy), crossing below = death cross (sell); new price high while DIF does not = top divergence (bearish).

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