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What Is Moving Average Convergence or Divergence (MACD)?

By Jeremy Bowman – Updated Dec 13, 2024 at 10:06AM

Key Points

  • MACD uses 26-day and 12-day EMAs to signal buy/sell based on stock momentum.
  • Buy when MACD line crosses above the signal line; sell when it falls below.
  • MACD is effective in trending markets but less reliable in sideways markets.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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