MACD

Moving Average Convergence Divergence -- a momentum indicator developed by Gerald Appel in the late 1970s that shows the relationship between two exponential moving averages (typically the 12-day and 26-day). When the MACD line crosses above its signal line, traders interpret it as a bullish signal; a cross below is bearish. The MACD histogram, which plots the difference between the two lines, helps traders visualize momentum shifts before a crossover occurs.