What is MACD in trading?
MACD (Moving Average Convergence Divergence) is a momentum and trend indicator built from the difference of two exponential moving averages (typically 12 and 26 periods), with a 9-period signal line. Crossovers between MACD and signal line indicate momentum shifts. Developed by Gerald Appel in the late 1970s.
More detail
Standard MACD settings are 12, 26, 9 — these have remained unchanged since Appel introduced the indicator.
MACD above the zero line indicates an uptrend; below indicates a downtrend.
MACD divergence is among the most reliable signals — when price makes new highs but MACD fails to confirm, trend exhaustion is often near.