![]() To determine the MACD, two different exponentially weighted moving averages are needed, which are calculated from data series of closing prices. The MACD visualizes the convergence and divergence of the moving average and belongs to the so-called trend followers. MACD (Moving Average Convergence Divergence) is a commonly used indicator in market engineering. The sell signal pattern for Harmony (ONE) could be determined on with a MACD of -0 could be determined.ĭefinition and Interpretation of Moving Average Convergence Divergence The buy signal pattern for Harmony (ONE) could be seen on with a MACD of -0.001 could be determined. The current MACD value of 0.00 can be interpreted as bullish signal Harmony (ONE) Moving Average Convergence Divergence There are many ways to calculate the moving average, but the most commonly used is the so called Simple Moving Average (SMA). ![]() A sell signal, on the other hand, occurs when the faster moving average breaks the slower moving average from top to bottom. Whereby such statements should always be taken with caution and should never be the sole component of a decision-making process.Ĭoncrete buy and sell signals arise when the faster (the one with the shorter period) of the switched on moving averages breaks through the slower moving average from the bottom to the top. If prices continue to fall below the relevant line, there is a chance of a trend reversal to the upside. In the opposite case, a weak buy signal can be seen. If the moving average describes a descending curve and prices have been above this moving average so far, then selling should be done. A trend reversal with retracements may also be imminent in some cases. Then it can quickly happen that a reversion to the moving average occurs. It should always be kept in mind the so-called danger of overheating, which occurs when the prices that are above the moving average line of interest continue to rise. If the price quotes below the moving average, then this is to be understood as a bearish signal. If the price of a cryptocurrency quotes above the selected moving average, then it can be considered a bullish signal. As the number of n-periods increases, the course of the price is smoothed more and more in order to get a clearer picture and to be able to recognize trends better. This allows the average price to be seen at a glance. ![]() The moving average is used to show the course of a price over a certain period of time. ![]() Definition and Interpretation of Moving Average. ![]()
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