What does it mean for the difference between a 12-period MA and a 26-period MA to be lower or higher than a 9-period MA?
I also don't understand how the 9-period signal line can be plotted next to the MACD when the MACD has values that differ wildly from those of a 9-period MA. This is demonstrated in the screenshot which shows an asset floating around the 3 dollar range (top graph) with a 9-period signal line floating around 0 (MACD).
Why is it also a signal to buy when the MACD crosses the signal line from below?
