How to use MACD Indicators Technical Analysis of Stocks?

Moving Average Convergence Divergence (MACD) is the indicator.

MACD is calculated as follows:

1. Calculate Average of 12th day EMA
2. Calculate Average of 26th day EMA
3. Subtract the 12th day EMA and 26th day EMA, this is called MACD line.
4. Calculate the 9 period SMA from MACD line, this is called signal line.

The difference between Signal and MACD line, this represented histogram.

When the blue line crosses red from below and values of MACD are negative, then you buy.

When the blue line crosses red from above and values of MACD are positive, then you sell.

Happy Trading & Happy Investing