Key Takeaway
MACD (Moving Average Convergence Divergence) identifies trend changes by comparing two moving averages. A bullish crossover (MACD crossing above signal line) is a widely-used buy signal.
MACD Calculator
Calculate MACD line, Signal line, and Histogram.
Bullish Momentum (Histogram > 0)
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Frequently Asked Questions
What is the MACD indicator?
Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a stock's price.
What is a MACD crossover?
A bullish crossover occurs when the MACD line crosses above the signal line. A bearish crossover occurs when the MACD line crosses below the signal line.
What is MACD divergence?
Divergence occurs when the stock price makes a new high/low, but the MACD indicator fails to make a corresponding high/low. This often signals that the current price trend is exhausting and about to reverse.
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