What is MACD?
MACD, short for Moving Average Convergence Divergence, compares two exponential moving averages to show shifts in momentum and trend. It plots a MACD line, a signal line, and a histogram of the gap between them. Traders watch where these lines cross and how the histogram grows or shrinks.
Why MACD matters
It bundles trend and momentum into one view, which is why it appears on so many charts.
Related terms
Lessons that use this term
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