MACD

3.MACD : (Moving Average Convergence / Divergence)

macd is use for divergence and convergence.when market going uptrend and down trend. after some time market going to reverse trend . that time MACD is use.

its a default setting is

12 EMA

26 EMA

9 MACD SMA

macd has 2 moving line one is slow and another is fast.but its not a moving average.who people who think.its a different .and third is histogram. when fast and slow moving are cross that time give a signal to market start to reverse.

when both line crossing on histogram in same trend , that time also make an Entry of Buy and Sell. its a good time for profit.

Example:

Stochastic