This article explains the MACD, a standard indicator on most trading platforms and AI-enhanced trading systems. It is used to measure momentum and highlight possible changes in price direction.

Learn the best technical indicators to use as part of a trading strategy in conjunction with the moving average convergence divergence (MACD) indicator.

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 ...