MACD
Trend Indicator
MACD
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator.
Overview
MACD shows the relationship between two moving averages of a security's price. It consists of the MACD line, signal line, and histogram. Crossovers between these lines can signal potential buy or sell opportunities.
Use Case
Useful for identifying trend changes, momentum shifts, and potential entry/exit points.
Calculation
MACD = 12-period EMA - 26-period EMA