MACD (Moving Average Convergence Divergence) is a momentum indicator built from the difference between two moving averages, plus a signal line and a histogram. Crossovers and the histogram flipping are used to gauge momentum shifts. Like all indicators it lags price and works best as confirmation, not as a standalone signal.
This term belongs to Charting & method. See how it fits the bigger picture in The Method, part of the free DEGEN ACADEMY — or watch it play out on the live terminal.
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FAQ
What is MACD?
MACD (Moving Average Convergence Divergence) is a momentum indicator built from the difference between two moving averages, plus a signal line and a histogram. Crossovers and the histogram flipping are used to gauge momentum shifts. Like all indicators it lags price and works best as confirmation, not as a standalone signal.