Charts & technicals
MACD
An indicator showing the gap between two exponential moving averages, with a signal line.
How it works
MACD subtracts a longer average from a shorter one, then compares the result to its own average. Crossings are read as momentum shifts.
Like all moving-average constructions, everything it contains is past price.
Related terms
- Moving averageThe average price over a trailing window, used to smooth out day-to-day noise.
- Relative strength indexAn oscillator from 0 to 100 measuring how one-sided recent price moves have been.
- MomentumThe tendency of recent winners to keep outperforming, and losers to keep underperforming, over months.
- Technical analysisStudying price and volume history to inform decisions, rather than studying the business.
More in Charts & technicals
- Golden cross and death cross
- Candlestick chart
- OHLC
- Bollinger bands
- Relative strength
- Bear market
- Trend
- Support and resistance
All 13 Charts & technicals terms · The full glossary, 433 terms
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