<h2>Moving Average Convergence Divergence (MACD)</h2>
<p>Moving Average Convergence Divergence (MACD) is a technical indicator that measures the difference between two moving averages to identify changes in an instrument's price momentum. It's widely used by traders to spot trends, reversals, and buy/sell signals.</p>

<h2>How It Works</h2>
<p>The MACD line is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A signal line, typically a 9-day EMA of the MACD line, is also plotted to identify buy/sell signals. Additionally, a MACD histogram represents the difference between the MACD line and the signal line as a bar chart.</p>
<p>When the MACD line crosses above the signal line, it indicates a bullish signal (buy), and when it crosses below, it indicates a bearish signal (sell). Divergences between the price and the MACD line can also signal trend reversals.</p>

<h2>Why It Matters for Traders</h2>
<p>MACD helps traders to:</p>
<ul>
  <li>Identify trend changes and reversals</li>
  <li>Generate buy/sell signals</li>
  <li>Confirm trend continuation or trend reversal signals from other indicators</li>
  <li>Measure the strength and direction of the current trend</li>
</ul>

<h2>Example</h2>
<p>Consider EUR/USD on MetaTrader 5 with the following settings: MACD fast (12), slow (26), and signal (9).</p>
<p>In an uptrend, the MACD line crosses above the signal line, generating a buy signal. Conversely, in a downtrend, the MACD line crosses below the signal line, generating a sell signal. Divergences between the price and MACD line can indicate trend reversals.</p>

<h2>Key Takeaways</h2>
<ul>
  <li><strong>MACD</strong> is a trend-following momentum indicator</li>
  <li>MACD signals are generated by the MACD line crossing the signal line</li>
  <li>Divergences between price and MACD can indicate trend reversals</li>
  <li>MACD is best used in conjunction with other indicators for better accuracy</li>
</ul>