MACD, What is it?

MACD is a popular momentum indicator built from the difference between two exponential moving averages (usually 12 and 26 sessions), plus a "signal line" (a 9-session average) and a histogram showing the gap between them. Its key signals: the MACD line crossing above the signal line is read as bullish, below as bearish; crossing above zero confirms an uptrend. Like all indicators, it works best in clearly trending markets and gives false signals in choppy, sideways ones. A divergence between MACD and price is a strong warning of weakening momentum. FoudaLens computes MACD among the technical indicators for every stock.