short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s.

MACD Signals
  • Zero Bull Zero-line Bullish crossover
  • Zero Bear Zero-line Bearish crossover
  • Signal Bull Signal-line Bullish crossover
  • Signal Bear Signal-line Bearish crossover
Zero crossover
A "zero crossover" event occurs when the MACD series changes sign, that is, the MACD line crosses the horizontal zero axis. This happens when there is no difference between the fast and slow EMAs of the price series. A change from positive to negative MACD is interpreted as "bearish", and from negative to positive as "bullish". Zero crossovers provide evidence of a change in the direction of a trend but less confirmation of its momentum than a signal line crossover.

Signal-line crossover
A "signal-line crossover" occurs when the MACD and average lines cross; that is, when the divergence (the bar graph) changes sign. The standard interpretation of such an event is a recommendation to buy if the MACD line crosses up through the average line (a "bullish" crossover), or to sell if it crosses down through the average line (a "bearish" crossover). These events are taken as indications that the trend in the stock is about to accelerate in the direction of the crossover.