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What is MACD?

Two moving averages, a signal line, and a histogram.

5 min · Advanced · Lesson 9 of 12

Step 1 of 5

The parts of MACD

MACD (moving average convergence divergence) is built from moving averages:

  • The MACD line: the 12-day average minus the 26-day average (using exponential averages that weight recent days more).
  • The signal line: a 9-day average of the MACD line.
  • The histogram: the MACD line minus the signal line.

For entertainment and education, not investment advice.