MACD
The MACD measures the gap between two exponential moving averages (12 and 26). Its signal line and histogram track the trend's momentum.
Designed by Gerald Appel, the MACD (Moving Average Convergence Divergence) has three parts. The MACD line is the difference between the 12 EMA and the 26 EMA. The signal line is a 9 EMA of the MACD line. The histogram shows the gap between the two.
Classic signals: the MACD line crossing above the signal line (bullish) or below it (bearish), crossing above or below zero, and divergences with price.
The MACD is a trend and momentum indicator, so it lags. It gives clean signals in strong trends and lots of false alarms in ranges.