What is MACD (Moving Average Convergence Divergence)?
MACD is a trend-following momentum indicator that shows the relationship between two exponential moving averages — used to spot trend changes and momentum shifts.
Formula
MACD Line = 12-day EMA - 26-day EMA. Signal Line = 9-day EMA of MACD Line.
How to Interpret
MACD crossing above signal line = bullish. MACD crossing below = bearish. Divergence between MACD and price can signal trend reversals.
Typical Ranges
No fixed range. Used for crossover signals and divergence analysis.