Charts & technicals
What is MACD?
Also called: Moving average convergence divergence
Hinglish mein padhein: MACD kya hota hai?
MACD is the difference between the 12-day and 26-day EMAs, with a 9-day EMA 'signal line'. Crossovers and the histogram show momentum shifts.
MACD crossing above its signal line is read as bullish momentum; crossing below as bearish.
Like all moving-average tools it lags and can whipsaw in sideways markets.
Related terms
- Moving average (SMA and EMA)A moving average is the average closing price over the last N days, updated daily. It smooths noise to show the trend.
- RSI (Relative Strength Index)RSI is a momentum oscillator from 0 to 100 that compares recent gains with recent losses, usually over 14 periods.
- MomentumMomentum is the tendency of stocks that have risen strongly to keep rising for a while (and fallers to keep falling).