What's the logic behind selecting the EMA 12 and EMA 26?
Moreover, my understanding was that MACD is not to be used in sideways markets.
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What's the logic behind selecting the EMA 12 and EMA 26?
Moreover, my understanding was that MACD is not to be used in sideways markets.
Logic is that we have to get fast EMA and slow EMA. 12 is 2 weeks whereas 26 is 1 months which is ideal scenario to see the momentum of the stock. Though the market is sideways the individual stock might be on the momentum which we have to find out. But there can be some problem also like frequent crossover which is a problem sometimes.