# ₿itcoin MACD

## Moving Average Convergence/Divergence of ₿itcoin

Source: deiopea.ch / @Deekee62

MACD, short for moving average convergence/divergence, is a
trading indicator used in technical
analysis of stock prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in
the strength, direction, momentum, and duration of a trend in a stock's price.

The MACD indicator or "oscillator" is a collection of three
time series calculated from historical price data, most often the closing price. These three series
are: the MACD series proper, the "signal" or "average" series, and the "divergence" series which is the difference between the two. The MACD series is the difference
between a "fast" (short period) exponential moving average (EMA), and a "slow" (longer period) EMA of the price series. The average series is an EMA of the MACD series
itself.

The MACD indicator thus depends on three time parameters, namely the time constants of the three EMAs. The notation "MACD(a,b,c)" usually denotes the indicator where
the MACD series is the difference of EMAs with characteristic times a and b, and the average series is an EMA of the MACD series with characteristic time c. These
parameters are usually measured in days. The most commonly used values are 12, 26, and 9 days, that is, MACD(12,26,9). As true with most of the technical indicators,
MACD also finds its period settings from the old days when technical analysis used to be mainly based on the daily charts. The reason was the lack of the modern trading
platforms which show the changing prices every moment. As the working week used to be 6-days, the period settings of (12, 26, 9) represent 2 weeks, 1 month and one and a
half week. Now when the trading weeks have only 5 days, possibilities of changing the period settings cannot be overruled. However, it is always better to stick to the
period settings which are used by the majority of traders as the buying and selling decisions based on the standard settings further push the prices in that direction.

As soon as the price of ₿itcoin in the current cycle rises, it starts to assimilate to the past 3 cycles. So if the 2021 bullmarket follows the
last cycle of 2015-2017 the target price is around $200k

Am I missing any important ₿itcoin charts? Let me know and I will add them to the page.

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