Basic detail of MACD

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A Moving Average Convergence Divergence indicator is a trend-following momentum indicator that depicts the relationship between two price-moving averages. Traders use the MACD to determine whether bullish or bearish momentum is strong in order to determine when to enter and exit transactions.

When the MACD line crosses above the signal line, it can be read as an indication to buy, while when it crosses below the signal line, it is an indication to sell.