#MerlinTradingCompetition The MACD indicator is one of the most important technical analysis tools in financial markets, often dubbed the "holy grail" for its ability to uncover hidden market movements and determine optimal buy and sell points. It was created by American analyst **Gerald Appel** in the 1970s to track price fluctuations through three mysterious numbers:
- 12 days: to measure short-term movements.
- 26 days: to track long-term trends.
- 9 days (signal line): to predict market reversals.
These numbers are interpreted as a "secret code" that reveals the strategies of major traders and market makers, seamlessly combining momentum and trend analysis. Despite technological advancements, the indicator is still used with the original settings and serves as a fundamental reference for both professionals and amateurs in analyzing stocks, currencies, and even cryptocurrencies.
The MACD is described as the "whisper of the market" that guides traders amidst the noise, symbolizing Appel's keen insight that transformed numbers into a language that decodes markets.
Summary:
MACD is not just a technical indicator, but a tool that carries a deep philosophy for understanding market movements, remaining an enduring legacy in the world of trading.