What is the MACD (Moving Average Convergence / Divergence)

The MACD (Moving Average Convergence / Divergence) - was invented by G. Apple. This indicator is a momentum created by using two moving averages of different speed. The premise of this instrument is that the distance between the faster and the slower mean increases when the trend of the market is well defined, indicating an acceleration of the movement and confirming the strength. Instead this distance would shrink  during deceleration.
When then the market enters a phase of congestion, the continuous junctions between the two averages, that is the difference between the two, becomes very small, passing continuously from positive values ​​to negative values. The MACD is an indicator followed by many analysts, including some analysts at Accendo Markets.
In other words, this indicator is similar to the RSI and other momentum indicators: first of all we must understand if we are in a phase trending or trading.
The MACD represents the difference between an exponential moving average of 26 days and an average exponential up to 12 days ("signal line").
An exponential moving average of nine days, called "trigger line", is used to generate signals of buying or selling, according to the usual rule of the intersection means: when the fastest (the signal line) cuts from the bottom ' high the slower you have a buy signal; when the fastest size from top to bottom the slower you have a sell signal.

Another trading signal is also the crossing of the zero line, obviously in the sense bullish when the MACD returns to a positive values ​and bearish when in a downward direction.
Not being an oscillator, the MACD does not provide fixed areas of "overbought" or "oversold": in each case the levels of the MACD are far from zero. These extensions can detect levels of "overbought" or "oversold "that must be interpreted by the trader.

As with other indicators, the MACD can interpret convergence and divergence. This occurs when  the MACD has an inclination opposite to that of the price chart.
As with other indicators, the importance of the convergence divergence is greater the longer occur at levels of "extreme" from "overbought" or "oversold".
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