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Chart School · Indicators 101 · Lesson
MACD
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A subtraction with a long name
MACD sounds complicated and is not. It is one moving average subtracted from another — conventionally a 12-period minus a 26-period.
When the fast average is above the slow one, the result is positive. When it is below, negative. That single number, plotted over time, is the MACD line.
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