Question: How does the MACD indicator work?

Question: How does the MACD indicator work?

Answer

The fast line (MACD line) is a graphical interpretation of the difference between the original fast and slow moving averages. The difference between fast and slow EMA is also displayed as a chart. There is also a signal line on the chart (sometimes called a slow line). It is a simple moving average of the MACD line.

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