MACD
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Moving average convergence divergence |
|---|---|
| Categories | Business & Finance |
MACD stands for Moving average convergence divergence, a stock market & investing abbreviation.
Trend-following momentum indicator calculated as the difference between a 12-period and a 26-period exponential moving average, plotted with a 9-period EMA "signal line." Crossovers between the MACD and its signal line are read as buy or sell signals.
Example: A bullish MACD crossover on the daily chart prompted the trader to add to her position.
Usage notes
Developed by Gerald Appel in the late 1970s. Pronounced "MAC-dee" or as letters. A histogram showing the gap between the MACD and the signal line usually appears beneath the price chart. Like other indicators, it lags price and can give false signals in sideways markets.
Related abbreviations
More stock market & investing abbreviations
- ITM – In the money
- IV – Implied volatility
- KOSPI – Korea Composite Stock Price Index
- LEAPS – Long-Term Equity AnticiPation Securities
- LSE – London Stock Exchange
- MA – Moving average
- MF – Mutual fund
- MLP – Master limited partnership
- MMF – Money market fund
- MOC – Market on close
- MPT – Modern portfolio theory
- MSCI – Morgan Stanley Capital International