📊 MACD Crossover Strategy – A Momentum-Based MA System Using Python
Are you curious about using Python for trading and technical analysis ? One powerful momentum-based strategy you can learn and build is the MACD Crossover system. It’s simple, effective, and widely used by traders to catch market trends. In this blog, you’ll learn: What MACD is and how it works How to use it to create buy/sell signals How to implement the MACD crossover strategy using Python and yfinance 🧠 What is MACD? MACD stands for Moving Average Convergence Divergence . It’s a trend-following momentum indicator that shows the relationship between two moving averages of a stock’s price. 📌 Components of MACD: MACD Line : Difference between the 12-day EMA and the 26-day EMA Signal Line : 9-day EMA of the MACD Line MACD Histogram : MACD Line - Signal Line ⚙️ Strategy: MACD Crossover This strategy generates signals based on crossovers : Buy Signal : When MACD Line crosses above the Signal Line (bullish momentum) Sell Signal : When MACD Lin...