← Glossary · Charts and indicators
MACD
An indicator that uses two moving averages to read changes in trend and momentum.
The MACD (Moving Average Convergence Divergence) is the difference between a short and a long exponential moving average, plus a signal line that is an average of the MACD itself.
When the MACD rises above its signal line, many read it as easing selling pressure or the start of an upswing. Like all indicators it lags the price and gives many false signals in sideways markets.