MACD

Updated 2026-09-20

Definition

An indicator that compares two exponential moving averages (usually 12 and 26) and shows a line, a signal and a histogram.

Why it matters

It signals momentum changes and helps spot divergences. Like moving averages it lags and produces false signals in ranges.

Practical example

MACD line above zero: bullish momentum; a cross below the signal line: possible weakening.

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Full glossary

Educational content, not financial advice. Trading involves risk.