MACD instruction

MACD is one of the most popular technical indicators created by Gerald Appel in the 1960s, it stands for Moving Average Convergence / Divergence. It uses Exponential Moving Average (EMA) to show the difference between a fast and slow EMA of closing prices. The standard formula for MACD to caculate its 12 days and 26 days EMA, 12days EMA is the fast line and 26 days EMA is the slow line, Subtract the slow line from the fast line and plot their difference which is called MACD line. The signal line is caculated by 9 days EMA, it gives a buy signal if the MACD line is above the signal line, it gives a sell signal if the MACD line is under the signal line.

MACD Formula :
MACD Line= EMA (12)-EMA(26)
Signal line=EMA(9)

(The day of MACD could be variable based on choice of traders)