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Momentum

Moving Average Convergence Divergence

MACD

Subtracts a slow EMA from a fast EMA to measure momentum, then smooths the result into a signal line. Traders watch for crossovers between the MACD and signal lines, and the histogram shows the gap between them.

Tips

Signal line crossovers in extreme territory (far from zero) are more reliable than crossovers near the zero line
Histogram shrinkage can warn of momentum loss before the actual crossover happens; watch for bars getting shorter

Parameters

Fast EMA
2 - 50
Slow EMA
10 - 100
Signal
2 - 30