The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMA's) of a security's price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The difference between these two EMA's forms the divergence line. A rising or falling MACD line indicates that bulls and bears are catching up with one another or trying to catch up with one another.The MACD is an indicator that calculates the difference between two exponential moving averages (EMAs). The MACD was originally developed by Gerald Appel who first published his version in 1979.Moving averages and momentum indicators are two of the most important tools in technical analysis. The purpose of these indicators is to show whether a security is trending or not, and to give you an indication as to when the security will reverse its position.Diagram of Moving Average Convergence Divergence (MACD): -Moving average convergence divergence (or MACD) is a technical analysis indicator which measures inactivity for a given security. It is considered to be a momentum oscillator which shows how two exponential moving averages (EMAs) of the price are related. MACD can be used to identify short- and long-term trend, signal reversal and more importantly, act as support and resistance levels on the chart.
