Moving Average Convergence/Divergence (MACD)
MACD tracks momentum by comparing two moving averages of a stock’s price. It helps show changes in strength, direction, and duration of a trend. The MACD line and the signal line crossovers are the most watched signals.
When the MACD line crosses above the signal line, it can be a buy signal. When it crosses below, it may be a sell signal. Also, watch for divergence between MACD and stock price for early trend reversal signs.
Infosys MACD line crosses above its signal line after a long downtrend. If volume supports it, traders may see this as a sign of a bullish reversal starting.
| Parameter | Description | Default Value |
|---|---|---|
| Fast period | Fast period for the indicator | 12 |
| Slow period | Fast period for the indicator | 26 |
| Signal period | Fast period for the indicator | 9 |