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Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of an instrument’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.

MACD = 12-period EMA – 26-period EMA

The result of that calculation is the MACD line. A nine-day EMA of the MACD is called the “signal