Moving Average is a momentum and trend indicator which is calculated by subtracting 26 periods EMA from the 12-period EMA.u003cbru003eThis indicator generates a bullish signal when whenever the 12 period EMA is above the 26 periods EMA and generates a bearish signal when the 12 period EMA is below the 26 periods EMA.u003cbru003eThe 9 period EMA is considered as the signal line.u003cbru003eThe formula for calculating MACD is:u003cbru003eMACD = 12 PERIOD EMA – 26 PERIOD EMAu003cbru003e