MACD (Moving Average Convergence Divergence)

Indicators

A trend-following momentum indicator showing the relationship between two EMAs (typically 12 and 26 period). Consists of the MACD line, signal line, and histogram. Signal crossovers and divergence are key trading signals.

Related Terms

EMA (Exponential Moving Average)

A moving average that gives more weight to recent prices, making it more responsive to new information than the SMA.

Momentum

The rate of change in a security's price.

Divergence

When price makes a new high/low but an indicator (RSI, MACD, OBV) does not confirm it.

Learn More

MACD: Momentum and Trend

Level 3: Technical Toolkit · 20 min