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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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