What Is a Moving Average Convergence Divergence?
Moving average convergence divergence (MACD) was devised by trader Gerald Appel. It is a technical trading tool that demonstrates the association between two moving averages of prices for assets, such as commodity futures or stocks. The MACD is often referred to as a trend following indicator. It is primarily used by traders to detect changes in the most recent trend. This technical trading tool is usually not used by traders in markets that are fixed in a trading range.