Quantina Advanced MACD
The MACD indicator is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below:
- MACD Line: The 12-period Exponential Moving Average (EMA) minus the 26-period EMA.
- MACD Signal Line: A 9-period EMA of the MACD.
- MACD Histogram: The MACD minus the MACD Signal Line.
Quantina Advanced MACD Indicator also includes an own developed Moving Average Indicator which is built-in to this MACD Indicator. You can use it to determine longer trend direction.
Moving Average Convergence / Divergence (MACD) Oscillator
Developed by Gerald Appel in 1979, the Moving Average Convergence/Divergence oscillator (MACD) is one of the simplest and most effective momentum indicators. The MACD turns two moving averages into a momentum oscillator by subtracting the longer or slower moving average from the shorter or faster moving average. As a result, the MACD offers the best of both worlds: trend following and momentum. This is a most popular indicator fluctuating above and below the zero line as the moving averages converge, cross and diverge. Traders can look for signal line crossovers, centerline crossovers and divergences to generate buy/sell signals.
Signal Line Crossovers
Signal line crossovers are the most common MACD signals. A bullish crossover occurs when the MACD turns up and crosses above the signal line. A bearish crossover occurs when the MACD turns down and crosses below the signal line. Crossovers can last a few days or a few weeks, it all depends on the strength of the move. As an extension in Quantina Advanced MACD Indicator you can use a built-in Long term Moving Average Trend detector to trade in the right direction only.