Ads end in 20 seconds
This content is free thanks to our sponsors
Sponsored Ad – I may earn a commission if you click and buy
Investment
MACD
Moving Average Convergence Divergence — a trend-following momentum indicator that shows the relationship between two moving averages.
MACD is one of the simplest yet most powerful indicators. It helps traders spot changes in momentum and trend strength. It is especially useful in combination with other tools like RSI or volume.
It's two moving averages having a conversation — when they get close or cross, something important is happening.
Real world: When the MACD line crosses above the signal line, it is a bullish signal. When it crosses below, it is bearish. Many traders also watch for divergence between MACD and price.
💡 MACD is the classic momentum indicator that still works after decades of use.