MACD (Moving Average Convergence Divergence) tracks the relationship between two moving averages to show trend direction and momentum. Traders watch its line crossing a signal line, and its distance from zero, for clues about strengthening or fading moves. It is a popular, versatile indicator.
Forex Term
MACD
A trend-and-momentum indicator built from moving averages.
Example
When the MACD line crosses above its signal line, some traders read it as a bullish signal.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.