MACD compares moving averages to describe momentum

Dukascopy introduces moving average convergence/divergence as a study of the relationship between two averages of earlier prices. The MACD line, its signal line and the histogram provide different views of that relationship. A crossover can highlight a change in the calculated momentum, while a histogram describes the separation between the lines.

The article also discusses divergence, where the indicator and market price do not confirm each other. That disagreement can be relevant to an analyst’s assessment, but it does not determine the timing of a reversal. A price trend can continue despite a weakening momentum measure.

The guide compares MACD with other technical tools and outlines its calculation. This digest treats it as a descriptive indicator, not a forecast engine. Settings, timeframe and market conditions change the reading, and the source’s commercial trading invitations are excluded.