Glossary Detail: MACD (Moving Average Convergence Divergence)
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Backtesting MACD (Moving Average Convergence Divergence) on High-Beta Names
Trend-following momentum indicator showing the relationship between two EMAs. Crossovers signal potential trend changes.
Further Details:
MACD is a trend-following momentum indicator that shows the relationship between two exponential moving averages. It consists of the MACD line (12 EMA - 26 EMA), the Signal line (9 EMA of MACD), and the Histogram (MACD - Signal).