how accurate is macd divergence
The red line is the average or signal series, a 9-day EMA of the MACD series. The bar graph shows the divergence series, the difference of those two lines. MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s.It is supposed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price.he MACD series is the difference between a fast (short period) exponential moving average (EMA) , and a slow (longer period) EMA of the price series. The average series is an EMA of the MACD series itself. The MACD indicator thus depends on three time parameters, namely the time constants of the three EMAs.