MACD
Also called: moving average convergence divergence, MACD histogram, signal line
An indicator built from the difference between a 12-period and a 26-period exponential moving average, with a 9-period signal line and a histogram.
The MACD line shows whether shorter-term momentum is above or below longer-term momentum; the histogram is the MACD line minus its signal line. Because it is built from moving averages, and a moving average of those, MACD lags price and its crossovers confirm rather than anticipate moves.
Learn more in these lessons
- MACDHow does MACD work, and are its crossovers early signals?
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