MACD (Moving Average Convergence Divergence) is a trend and momentum oscillator built from the relationship between two EMAs. It plots a MACD line, a signal line, and a histogram showing the gap between the two - many traders watch for the MACD line crossing above or below the signal line as a sign of shifting momentum, combining both trend and momentum information in a single indicator.
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See how each of its three parts works in MACD Explained on TradingView.
