# MACD LE

### Definition

Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. MACD can be used to identify aspects of a security's overall trend. The MACD will be over zero when the two exponential averages are bullish and under zero when the two exponential averages are bearish.

The MACD LE signal generates a buy order for the open of the next bar when the MACD crosses above the exponential average of the MACD. The MACD LE generates long entry orders only. Use MACD SE for short entries.

### Default Inputs

**FastLength** sets the number of bars used to calculate the fast exponential average, 12 by default.

**SlowLength** sets the number of bars used to calculate the slow exponential average, 26 by default.

**MACDLength** sets the number of bars used to calculate the MACD exponential average, 9 by default.