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Technical Analysis

What Is MACD?

Definition and plain-English explanation of "MACD"

MACD — Technical Analysis illustration

The Moving Average Convergence Divergence (MACD) is a trend-following indicator showing the relationship between two exponential moving averages. A MACD line crossing above the signal line is a bullish signal; crossing below is bearish. It is one of the most widely used technical indicators by traders for identifying momentum shifts.

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