Moving Average Convergence Divergence (MACD): | TakeMyTip

The MACD indicator, developed by Gerald Appel, tracks momentum and trend direction by measuring the relationship between two exponential moving averages (12 EMA and 26 EMA) alongside a 9-period Signal line.

Trading MACD Divergences

When the price of Nifty makes a lower low while the MACD histogram creates a higher low, a powerful bullish divergence is signaled, indicating that downside momentum has exhausted.