Introduction to MACD
The MACD trading method is actually based on 2 exponentially smoothed moving average and buy / sell signals are given when the 2 lines cross.
The MACD just like the RSI can also be calculated on a weekly or monthly basis. In addition, a divergence between the share price or a market index and its MACD is a powerful indicator of a reversal. It is also useful for short - term traders and should be used in conjunction with other indicators.