1. Introduction
MACD, short for moving average convergence divergence, is a technical indicator that presents the relationship between two moving averages of a security’s price. It is designed to reveal potential changes in a stock's price trend.
MACD is calculated by evaluating the convergence and divergence situations between the long-term exponential moving average and the short-term EMA. An EMA is a type of moving average (MA) that gives more weight to the most recent data points....