Investor Glossary-macdInvestor Glossary-macdInvestor Glossary-macdInvestor Glossary-macdInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

MACD

The HTML to link to this page
 

MACD, which stands for Moving Average Convergence Divergence, is a technical indicator designed to compare price fluctuations of stocks and futures. Specifically, MACD derives data by calculating the relationship between two exponential moving price averages. By plotting 12 and 26 day exponential moving averages, and then contrasting the two, MACD helps forecast market momentum on what's called a signal line. Hence, various positions along MACD signal line signify bullish or bearish market propensities. Divergences, crossovers, and dramatic rises are some of the MACD readings of market trends, through which MACD sets up buy and sell guide posts. An oscillator based method, MACD was developed by Gerald Appel. As with all other market indicators, MACD is best utilized in combination with other technical indicators.



Rate this MACD definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: dividends payable, limit order, phantom income, deferred tax, wholly-owned subsidiary, cancelled check, LIBOR, 1031 exchange, average price per share, per diem, APR, covered put, irrevocable trust, inflation, labor relations, current ratio, required rate of return, ex-dividend date, stock split, retained earnings, risk management, minority interest, open position, liquidity ratio, command economy, class C shares, ex-dividend, 144a, debt service coverage, diluted share, option premium, balance sheet, margin rate, real GDP, Key Rate Duration, reverse mortgage, FTSE, deferred revenue, FICO score, annual return, stock market close, 401a, EBITDA, implied volatility, 1035 exchange, Zero Cost Collar, quality assurance, VIX, in escrow


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use