Pipruit: Wait a minute – you’ve said that it consists of two lines, but here we have three… Commander in Pips: Yes, but Lines of MACD that you see on the chart are not just the MAs that we’ve specified. If it will be so, then why we should use it – this is the same as a simple MAs. What’s the difference? Pipruit: And so what are the lines then? Chart #1 60-min EUR/USD and MACD (12; 26; 9) Commander in Pips: Look how it works: 1. The fast line of MACD indicator calculates as difference between MA1 and MA2: MACD (line) = MA1-MA2. This is the first line that you see 2. The second line that is slower is a moving average that calculates using MACD (line) – that difference between MA1-MA2. Other words it plots average difference between MA1 and MA2. And by appointing some parameter for MACDA – you exactly appoint number of such differences that will be averaged by this third line: MACDA = Moving average on (MA1-MA2). That’s the second line. Although those two lines look like a simple MA crossing – the way of calculation gives significant advantages when you apply MACD. Pipruit: Sounds a bit complicated. So, the first line is a simple difference between two MAs that we’ve specified in the parameters of the MACD indicator. Speaking in terms of default settings – this is “26-period MA – 12-period MA”. So, software calculates the value for 12-period MA, then it calculates value for 26-period MA and finally calculates the difference between them and particular this difference we see as the first line of MACD Indicator right? Commander in Pips: Absolutely.