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-out price trends over different time periods) to spot shifts in buying and selling pressure. You'll see MACD on most charting platforms because traders use it to spot potential entry and exit points. When the MACD line crosses above its signal line (a slower-moving reference), some traders see it as a bullish sign; when it crosses below, bearish. For example, if TechCorp's MACD just crossed above its signal line after weeks of weakness, a trader might interpret that as early momentum returning. It's not foolproof—just one clue among many.