What Is MACD? — Moving Average Convergence/Divergence
WRITTEN BY CHANDAN KHANDELWAL | UPDATED NOVEMBER 15, 2022
What is MACD?
Moving Average Convergence/Divergence or MACD is a momentum indicator that shows the relationship between two Exponential Moving Averages (EMAs) of a stock price. Convergence happens when two moving averages move toward one another, while divergence occurs when the moving averages move away from each other.
This indicator also helps traders to know whether the stock is being extensively bought or sold. Its ability to identify and assess short-term price movements makes this indicator quite useful.
The Moving Average Convergence/Divergence indicator was invented by Gerald Appel in 1979.
The full article is at investing.com Academy Center