Market analysis · Pro
MACD
Also searched as: moving average convergence divergence
What does MACD mean?
Moving average convergence divergence, or MACD, compares moving averages to describe momentum. A signal line and histogram help show changes in that relationship.
Example
A MACD line crossing its signal line marks a change in their relationship.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
MACD is derived from past prices and is not bounded to a fixed 0-100 range.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.