One of the most popular methods of Technical Analysis is the MACD , Moving Average Convergence Divergence, indicator. The MACD uses three exponentially smoothed averages to identify a trend reversal or a continuation of a trend. The indicator, which was developed by Gerald Appel in 1979 , reduces to two averages. The first, called the MACD1 indicator, is the difference between two exponential averages , usually a 26-day and a 12-day average.
