// TRADING TERMINOLOGY

What is MACD?

Moving Average Convergence Divergence; a trend-following momentum indicator.

In-Depth Explanation

MACD shows the relationship between two moving averages of an asset’s price. It consists of the MACD line, the signal line, and the histogram, which represents the distance between the two.

Practical Example

"A bullish crossover occurs when the MACD line crosses above the signal line."

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