Using MACD indicator (Moving Average Convergence-Divergence) in your technical analysis

Most analysts call it the "Mac-D".

It was developed by Gerald Appel, and is based on exponential moving averages (EMA).

There are 3 components to the MACD:

1. The MACD fast line - black think line
2. The MACD signal line - blue thin line
3. The MACD histogram - the powder-blue bar chart that shows the difference between the MACD fast line and signal line

How to apply MACD:
By using MACD indicator (MACD Crossover) - to buy the instrument being charted when the fast line crosses above the signal line (bullish crossover) and sell (or short) it when the fast line crosses below the signal line (bearish crossover).