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 when buyers and sellers are shifting their behavior. You'll see MACD on most charting platforms because traders use it to spot potential buy and sell signals. When the MACD line crosses above a slower reference line called the signal line, some traders see it as a bullish sign; when it crosses below, it's bearish. Think of it like a speedometer for stock price movement—it doesn't tell you where the car is going, but it shows if it's accelerating or slowing down.