MACD

The Moving Average Convergence Divergence (MACD) is a widely used technical indicator that tracks the relationship between two exponential moving averages — typically the 12-period and 26-period EMAs — to signal momentum and trend direction. A signal line, usually a 9-period EMA of the MACD itself, is plotted alongside it, and crossovers between the two lines generate buy or sell signals. A rising MACD histogram indicates strengthening bullish momentum, while a falling histogram suggests bearish pressure. The MACD is particularly valued for identifying trend changes and divergences between price and momentum.