MACD

MACD stands for Moving Average Convergence Divergence—a tool that tracks whether a stock's momentum is building or fading. It compares two moving averages (smoothed price trends over different time periods) to spot shifts in buying and selling pressure. You'll see MACD on most charting platforms because it's popular with technical traders who use it to time entries and exits. When the MACD line crosses above a slower line called the signal line, some traders see it as a bullish signal; when it crosses below, it's bearish. Think of it like a speedometer for stock price movement—it tells you if the momentum is accelerating or slowing down, not where the price is headed.