Banknifty Trading Part 2 #Tradingview #Trading #Stocks

What Is MACD?
Moving average convergence/divergence (MACD) is a technical indicator to help investors identify price trends, measure trend momentum, and identify market entry points for buying or selling. Moving average convergence/divergence (MACD) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs) of a security’s price. MACD was developed in the 1970s by Gerald Appel.

KEY TAKEAWAYS
Moving average convergence/divergence (MACD) is a technical indicator to help investors identify market entry points for buying or selling.
The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
The signal line is a nine-period EMA of the MACD line.
MACD is best used with daily periods, where the traditional settings of 26/12/9 days is the default.

What MACD Signals
The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The calculation creates the MACD line. A nine-day EMA of the MACD line is called the signal line, plotted on top of the MACD line, which can function as a trigger for buy or sell signals.