Moving average convergence/divergence [MACD]

Moving average convergence / divergence, MACD – The MACD is a commonly used indicator in technical analysis. The MACD indicator indicates two lines, one line is the trend and the second line is a signal line. If the lines cross each other then this is often a buy or sell signal. If the MACD line crosses in the direction of the signal line, this can be a buy signal. In case the MACD traverses the signal line in the downward direction, this can be a sellsignal.