← Glossary
MACD
MACD subtracts a slower EMA from a faster one, plots that difference as a line, and adds a signal line — an EMA of the MACD line itself — so the gap between the two lines and the histogram of that gap show whether momentum is accelerating or fading. A crossover between the MACD and signal lines is one of the more common indicator crossovers used in rule editors.
This explains what macd measures. It isn't investment advice — see the disclaimer.