Categories
Trading Glossary

MACD

MACD stands for Moving Average Convergence and divergence indicators is a momentum oscillator that are used for the trade trends. MACD describe the distance between the moving average that help the trader to identify the bullish or the bearish pattern in the price strenghthening and weakening. The MACD is a trend-following indicator since its purpose is to show the differences between two moving averages (MAs).