What is a MACD Stock Indicator?

The MACD stock indicators are used to determine the strength, direction and duration of a trend through the relationship between two moving averages. Sorry for the long-winded answer, but the MACD indicator throws a solid punch. Using MACD Stock Charts

Why do traders use MACD?

Traders use MACD to identify changes in the direction or strength of a stock’s price trend. MACD can seem complicated at first glance, because it relies on additional statistical concepts such as the exponential moving average (EMA).

What is the MACD line?

Moving average convergence/divergence (MACD, or MAC-D) is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs) of a security’s price. The MACD line is calculated by subtracting the 26-period EMA from the 12-period EMA. The result of that calculation is the MACD line.

What is a MACD series?

The MACD series is the difference between a "fast" (short period) exponential moving average (EMA), and a "slow" (longer period) EMA of the price series. The average series is an EMA of the MACD series itself. The MACD indicator thus depends on three time parameters, namely the time constants of the three EMAs.