OPEN-SOURCE SCRIPT
MACD (The Moving Average Convergence Divergence)
The Moving Average Convergence Divergence (MACD) is a momentum indicator used in technical analysis to identify trends, measure their strength, and signal potential reversals. It is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA, creating the MACD line. A 9-period EMA of the MACD line, known as the signal line, is then plotted to generate buy or sell signals. Positive MACD values suggest upward momentum, while negative values indicate downward momentum. Traders often watch for crossovers, divergences, and movements relative to the zero line to make informed decisions.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.