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Trading glossary · indicators

MACD

A tool that compares a fast and a slow average price line to show whether a move is speeding up or slowing down.

The fuller meaning

Moving Average Convergence Divergence: the MACD line is the 12-period EMA minus the 26-period EMA, the signal line is a 9-period EMA of it, and the histogram shows the gap between them. Signal-line and zero-line crosses are common signals, but like all moving-average tools MACD lags and whipsaws in ranges.

MACD, also called moving average convergence divergence.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence