MACD (Moving Average Convergence/Divergence)

MACD - A trend-following momentum oscillator showing the difference between two EMAs (commonly 12- and 26-period) of price. It highlights trend strength and momentum. The MACD line crossing above/below its signal line (typically a 9-period EMA of MACD) gives buy/sell signals. In automated trading, MACD crossovers and divergences are popular entry signals.