← Glossary
MACD (Moving Average Convergence Divergence)
A trend-following indicator that compares two moving averages of price to signal whether short-term momentum is turning bullish or bearish.
MACD is built from the difference between a short-term and a longer-term exponential moving average (EMA12 and EMA26), plotted alongside its own signal line. When the MACD line crosses above its signal line, momentum is read as turning bullish; below, bearish.
It's a lagging indicator — it confirms a trend change after it starts, rather than predicting one — which is why StockPulse combines it with RSI and moving averages rather than using it alone.