MACD (Moving Average Convergence Divergence) is a popular technical indicator used in trading, including binary options trading. It helps traders determine the direction of the trend and possible reversal points.

🟢 Components of MACD:

MACD Line: The difference between two exponential moving averages (usually 12 and 26 periods).
Signal Line: The EMA of the MACD line (usually with a period of 9).
Histogram: The difference between the MACD line and the signal line.

How to use MACD?

✔️ Line Crossovers: The MACD line crossing the signal line from below indicates a buy signal, from above indicates a sell signal.
✔️ Divergence: The difference between price and MACD can signal a trend reversal.
✔️ Zero Line Crossover: Crossing from above confirms a bearish trend, from below confirms a bullish trend.

💡 Use MACD in combination with other indicators and technical analysis methods for more accurate signals. Always consider risk management and do not rely solely on one indicator.

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