An indicator built from the gap between a faster and a slower moving average of price, commonly 12 and 26 periods, plus a smoothed signal line. Traders read the gap and its crossovers as a gauge of whether momentum is building or fading.
Lesson
MACD (moving average convergence divergence)
An indicator built from the gap between a faster and a slower moving average of price, commonly 12 and 26 periods, plus a smoothed signal line. Traders read the gap and its crossovers as a gauge of whether momentum is building or fading.