MACD

Moving Average Convergence Divergence — a trend-following momentum indicator.

In depth

Calculated as 12-day EMA minus 26-day EMA, with a 9-day EMA "signal line." Bullish cross: MACD crosses above signal line. Bearish cross: MACD crosses below. Histogram shows distance between MACD and signal — narrowing histogram precedes crosses.

Related terms

RSI (Relative Strength Index)

A momentum indicator measuring speed and magnitude of price changes, scaled 0-100.

Moving Average

Average price over a recent period, recalculated as new prices come in.

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