Because the MACD is the dollar value between the two moving averages, the reading for differently priced stocks provides little insight when comparing a number of assets to each other.

The moving average convergence divergence is a technical indicator used to assess the power of price movement in a market.

An excellent tool to get an instant read of market momentum is the two-line MACD. The "Mac D" or Moving Average Convergence Divergence indicator is the brainchild of Gerald Appel, a money manager ...

The most basic MACD bullish signal is to buy when the MACD Indicator crosses over zero. That tells us that prices are trending up and that investors should buy.

One way that a MACD indicator can be used is to signal when a trend has been formed, which happens when the faster and the slower moving averages crossover.

Traders use the MACD indicator to identify turning points, facilitate entries on pullbacks and capture the larger part of a move until the trend starts to reverse course.

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 ...