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MACD TRADING / Technical Analysis

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Moving average convergence/divergence (MACD) is a technical indicator to help investors identify 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 MACD indicator (or oscillator) is a very popular indicator among traders around the world for identifying trends and reversals. It was invented around 1977 by Gerald Appel, who was looking for a quality indicator that could immediately be interpreted.

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