MACD (Moving Average Convergence/Divergence )

The Moving Average Convergence/Divergence (MACD) is a technical analysis indicator used to analyze price trends and momentum. It's calculated by subtracting a longer-term exponential moving average (EMA) from a shorter-term EMA. The resulting MACD line, along with a signal line (an EMA of the MACD line) and a histogram (the difference between the MACD and signal lines), helps traders identify potential buy and sell signals, as well as changes in the strength and direction of a trend.